Due to current market conditions, SIX Swiss Exchange has postponed the launch of its crypto services arm, SIX Digital Exchange (SDX).
It should be noted that the exchange is the main one in Switzerland and the 3rd of its kind in Europe. In September last year, the national regulator gave it the green light to launch crypto-related services exclusively to regulated institutions. Specifically, SDX planned to provide custody and staking services to banks, hedge funds, and other licensed financial firms.
SIX Swiss Exchange postpones the launch of Crypto Services
Now, due to “current market conditions,” the launch of the exchange’s crypto services has been postponed indefinitely, The Wall Street Journal reported.
Over the past year, several traditional Swiss financial players have entered the cryptocurrency industry. Apart from the SIX Swiss Exchange, the others are Arab Bank Switzerland, BBVA Bank and the country’s largest online bank, Swissquote. The exchange expected to tap into the country’s wealthy class to bring cryptocurrencies into its portfolio.
Recently, however, the crypto market has seen billions of dollars wiped out, as its overall market capitalization has plummeted below $1 trillion. Bitcoin (BTC) has fallen below $25,000, trading at $22,000 at the time of writing, while its market dominance has diminished.
MicroStrategy, the largest institutional holder of Bitcoin, now has over $1.26 billion in unrealized losses.
Tesla’s Bitcoin stash is $320 million less than its value at the time of purchase, while El Salvador’s stock has been roughly halved. Many other crypto players felt the drop, forcing them to act to avoid further losses.
The market crisis stings a lot
For example, crypto lending colossus Celsius had to halt its withdrawal services due to a liquidity shortage.
Meanwhile, crypto-mining firms have either sold off their mined stash or sought other sources of revenue in the debt and equity markets. Those taking such steps include Riot Blockchain, Cathedra Bitcoin, and Marathon Digital.
On the other hand, CryptoCom and BlockFi have laid off hundreds of people, citing the current market crisis. Note here that while these companies have reduced their number of employees, Binance has announced that they have 2,000 open positions.
Should Bitcoin and the rest of the crypto market continue the downward trend, many crypto holders would risk further selloffs, triggering bigger selloffs.
Still, investors like hedge fund manager Stan Druckenmiller and MicroStrategy CEO Michael Saylor remain positive about crypto. Saylor said Bitcoin is “unique” and “real,” which is why he sticks to his $1 million price prediction for the digital asset.
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