There was an article on ccn.com that was entitled, ‘Wall Street is Backing Out of Crypto’. So, of course, let’s address that.
First, the article is clearly following the Bloomberg article from Dec. 23rd, ‘Wall Street Quietly Shelves Its Bitcoin Dreams’, and the author didn’t bring up anything interesting on top of it.
But, taking both articles together, we can start to see the larger picture they’re trying to paint: anecdotally, some Wall St. banks have delayed or shutdown their cryptocurrency operations, and this means that all banking institutions are backing out of crypto.
It should be pretty obvious why that’s a ridiculous assertion to make, but I also don’t want to be dismissive. It’s true, banks like Goldman and Barclays have quietly rolled back their crypto trading desks, and that’s certainly not positive.
But, we have to look at the broader picture here.
What’s happening on Wall St. right now? Especially compared to a year ago this time?
Both Crypto and the Stock Market hit all time highs in January.
Now, the stock market is getting close to bear market territory.
Banks’ clients are getting fearful. People are losing faith in the market after nearly a decade of positive growth. Stocks are getting very volatile.
Quite simply, people are not interested in participating in a new asset class when their fearful about the assets that they do have.
This is not a reason to declare, “crypto is dead!”, or somehow imply that Wall St. has moved on from crypto.
Instead, we have to understand that there are forces against the larger market right now. That’s what everyone is going to be focused on, and it will be crypto’s opportunity, not death.
Once the walls come tumbling down, crypto will be seen as a reasonable alternative. We’re making some of our biggest and best developments this next year while Wall St. is going to be facing another expensive death.
When people lose faith in Wall St., they adopt cryptocurrency. Plain and simple.