Switzerland’s SIX Digital Exchange Postpones Crypto Services Launch Amid Market Sell-off (Report)
Due to prevailing market conditions, SIX Swiss Exchange has postponed the launch of its crypto services arm, SIX Digital Exchange (SDX).
Of note, the stock exchange is Switzerland’s main and the 3rd largest of its kind in Europe. In September last year, the nation’s regulator gave it the green light to launch crypto-related services exclusively to regulated institutions. More specifically, SDX planned on providing custody and staking services to banks, hedge funds, and other licensed financial firms.
SIX Swiss Exchange Puts off Launch of Crypto Services
Now, due to “current market conditions,” the exchange’s crypto services launch has been put off indefinitely, The Wall Street Journal reported.
In the past year, several of Switzerland’s traditional financial players have gotten in on the cryptocurrency industry. Other than the SIX Swiss Exchange, others are Arab Bank Switzerland, BBVA bank, and the nation’s largest online bank Swissquote. The stock exchange expected to tap into the nation’s wealthy class to make cryptocurrencies a part of their portfolio.
Recently, however, the crypto market has seen billions of dollars wiped out, as its overall market cap plummeted below $1 trillion. Bitcoin (BTC) fell below the $25K mark, trading at $22,000 as of writing time, while its market dominance shrunk.
MicroStrategy, the biggest institutional holder of Bitcoin, now has over $1.26 billion in unrealized losses.
Tesla’s Bitcoin stash is $320 million less than its worth at buying time, while El Salvador’s stock has been slashed by about half. Many other crypto players have felt the dip, forcing them into action to prevent further losses.
Market Crisis Stings Many
For instance, crypto lending colossus Celsius had to halt its withdrawal services amid a liquidity shortage.
Meanwhile, crypto mining firms have either sold off their mined stash or sought alternative sources of income in the debt and equity markets. Those taking such actions include Riot Blockchain, Cathedra Bitcoin, and Marathon Digital.
On the other hand, CryptoCom and BlockFi have laid off hundreds, citing the prevailing market crisis. Note here that while these companies reduced their employee count, Binance announced that it has 2,000 open positions.
Should Bitcoin and the rest of the crypto market continue with the downtrend, many crypto holders risk further liquidations, triggering greater sell-offs.
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 stands steadfast on his $1 million price forecast for the digital asset.