Parsing the “crypto winter” for banks
The news: The price of a basket of cryptocurrencies has declined 25% in the past month—including a 24% drop in the price of Bitcoin—and fallen precipitously since the market peak in October. It is perceived that the market has entered a new crypto winter: Prices and popularity fall, trading volume drops, and pessimism rises.
Why it’s worth watching: Cryptocurrency investments have quietly become accepted and encouraged by some demographics and large, traditional financial institutions (FIs). For example, Gen Zers favor alternative assets, including crypto—and 65% plan to invest more in it. Among FIs:
- Fidelity has made a massive push over the past few years into crypto trading and custody for retail investors.
- Bank of America is…
