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Wall Street is having cold feet on Bitcoin while Crypto Crash continues

Photo: Rick Bowmer (AP)

The crypto incident continued, with about $ 700 billion removed from the market by its peak at around $ 800 billion at the start of the year, and leaving behind a trail of destroyed startups. Bitcoin at one point closed the price of $ 3000, well below its peak of nearly $ 20,000 in 2017 and the so-called "plan" of $ 6,000. And now the main Wall Street companies, once they say they are preparing rumors about the cryptocurrency market – in particular bitcoin futures – seem to have cold feet after a brutal exhaustion of the encrypted prices this year, Bloomberg said Sunday.

Bloomberg wrote, "A number of major companies, including Goldman Sachs, Morgan Stanley, Citigroup and Barclays (London), all have plans to launch bitcoin-related financial services. Goldman, who "was among the first on Wall Street to cancel Bitcoin futures", was preparing a trading desk, and offers "Bitcoin derivatives called non-deliverable forward" (NDF), has yet to offer cryptography and has seen little interest in the NDF product:

The bank has yet to offer crypto trading and has received little traction for its NDF product, having signed only 20 customers, according to people familiar with the issue. Justin Schmidt, who was hired to direct his digital asset business, said at an industry conference last month that regulators are limiting what he can do. However, Goldman plans to add a digital goods specialist to his main brokerage division, the person said

Sources told Bloomberg that Morgan Stanley "was technically prepared to offer swaps to keep track of Bitcoin futures at least since September", but has nevertheless negotiated a single contract. Citigroup has not sold any of its cryptocurrency products "within the existing regulatory structures, according to a separate person with knowledge of their business", added the site, instead conducting only proxy negotiations. Barclays lost two senior executives to explore the industry and told Bloomberg he did not plan to launch an encryption desk.

Much of the caution is due to the crash, but other factors have included the lack of guidance from regulators and a series of criminal and other investigations into the sector, according to the Bloomberg report.

As Bloomberg noted, the true believers in the cryptocurrency remain firm on the fact that large financial institutions are still building the infrastructure to enter the market (which could save the falling prices of major currencies such as bitcoin). Some industrial sites have described the incident as an opportunity to eliminate scammers and reduce price volatility. Bloomberg wrote:

Even after the staggering sell-off of digital assets in 2018 – a year after Bitcoin has reached the distance of $ 20,000 now trades at around $ 4000 – cryptography professionals see the signs that institutions are preparing to return if necessary.

"The most important story is all the infrastructure that is being built now to allow institutional trading," according to Ben Sebley, a former Credit Suisse Group AG trader who is now in charge of brokerage at the NKB Encrypted Boutique Group.

Even after the plunge that has wiped out $ 700 billion from the value of cryptographic resources, believers stick to their script … "It seems that progress is stopping, yet nothing could be further from the truth," said Eugene Ng, a former trader of Deutsche Bank AG in Singapore who created Crypto Hedge Fund Circuit Capital.

In addition, Nasdaq and the New York Stock Exchange both plan to move forward with projects in 2019 at the end of November, according to CNBC, although two of the existing ones – managed by the Chicago Board Options Exchange and the Chicago Mercantile Exchange – had already achieved "their lowest level since they were introduced in December".

But at the start of this month, Bloomberg reported separately that the outlook is not much better.

"Based on the GTI VERA Band Indicator, Bitcoin is below its lower band that indicates more potential losses to come and no current floor," wrote the site, most likely to come.

[Bloomberg]
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