Cryptocurrency market update: Wall Street players plan exit moves cryptos add $10 billion

The recent crash in the crypto market appears to have sent jitters among the players in Wall Street. The firms which had expressed interest in Bitcoin and the crypto market at large are currently planning to back off their plans and stay clear of the assets.

It appears that the parabolic rise of the market at the end of 2017 was an attraction to Wall Street. However, the downtrend that has been experienced in the recent months spooked the institutional investors who had been eyeing the incredible gains of the market.

The entire crypto market has experienced huge losses to the tune of $700 billion. The losses came after the marked recorded its highest peak around $800 billion. The largest cryptocurrency by market capitalization slashed more than 80% of its value hitting $3,100 from its peak of around $20,000. There has been a slight recovery in the value of Bitcoin but current reports indicate that significant Wall Street firms are rethinking their planned involvement with digital asset market. Bitcoin futures are the assets that will receive the biggest hit if these firms go ahead with the exit plans.

The Executive officer of SolidX Partners, a firm based in New York reckons that the crypto market offered firms like Goldman Sachs impractical expectations. Besides, other firms riding on speculation have begun to see that it was simply a hype.

“That was top-of-the-market-hype thinking.”

Another comment by Justin Schmidt, a new appointed head of digital assets business at the financial guru, Goldman Sachs said that in the recent months that speculation has been ousted. He added that he is envisioning that companies will focus on building institutional-grade products as well as other related services.

“Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term,” Schmidt continued.

On the other hand, the crypto market continued to experience growth during the Christmas period and towards the new year. The market has added $11 billion in the last 24 hours with the current value standing at $145 from yesterday’s closing at $134 billion.