The cryptocurrency market continues its downward spiral, with approximately $700 billion wiped out since its peak earlier this year. Bitcoin recently closed at $3,000—a stark contrast to its 2017 high near $20,000 and its supposed $6,000 "bottom." Major financial institutions are reportedly losing confidence despite earlier enthusiasm for Bitcoin futures.
Wall Street Retreats from Crypto Services
According to Bloomberg, several key financial players have postponed Bitcoin-related initiatives:
- Goldman Sachs: Initially bullish on Bitcoin derivatives, now shows minimal interest in NDF products.
- Morgan Stanley: Technically prepared for Bitcoin futures since September but has executed zero trades.
- Citigroup & Barclays: Both have paused Bitcoin trading plans.
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The Crypto Faithful Remain Hopeful
True believers argue this crash serves as:
- A market correction to weed out bad actors
- An opportunity to stabilize price volatility
- A temporary setback while institutional infrastructure develops
Eugene Ng, former Deutsche Bank trader, notes: "Progress appears stalled, but the groundwork continues silently."
Exchange Ambitions Persist
As of late November:
| Exchange | Crypto Plans |
|---|---|
| NASDAQ | Pushing 2025 crypto futures |
| NYSE | Developing digital asset products |
However, Bloomberg's GTI VERA indicator suggests Bitcoin hasn't reached its true bottom yet, forecasting further declines.
FAQs: Understanding the Crypto Crash
Q: How much value has the crypto market lost?
A: Approximately $700 billion since its peak.
Q: Which major banks paused Bitcoin services?
A: Goldman Sachs, Morgan Stanley, Citigroup, and Barclays.
Q: Are any exchanges still pursuing crypto products?
A: Yes, NASDAQ and NYSE maintain 2025 crypto futures roadmaps.
Q: Why do crypto supporters remain optimistic?
A: They view this as necessary market cleansing and infrastructure-building time.
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Long-Term Outlook
While current indicators appear bleak, the cryptocurrency ecosystem demonstrates remarkable resilience. Institutional players continue laying groundwork despite public hesitation, suggesting this may represent a cyclical downturn rather than a terminal decline.