Big banks withdraw their plans to master crypto even as Bitcoin swings into recovery mode

Wall Street behemoths are shelving their crypto related plans to due to market uncertainty. Thus, Goldman Sachs Group Inc. is treading with caution despite its reputation of a pioneer in the industry. When it comes to conquering the crypto universe, Goldman's progress has been very slow and barely noticeable.

“The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business. That was top-of-the-market-hype thinking,"  Daniel H. Gallancy, chief executive officer of SolidX Partners said. His company is waiting for the SEC's decision on Bitcoin ETF.

Goldman is one of the first on Wall Street banks that started clearing Bitcoin futures. The company wanted to launch a trading desk for digital assets, but changed its mind and invested in BitGo Holdings Inc. instead.

While this may sound discouraging, lack of activity does not imply lack of interest. Traditional financial institutions need more time and more certainty when it comes to new ventures. As the cryptocurrency market settles down after violent two years, Goldman, Morgan Stanley, Barclays and the rest will start building a solid foundation and infrastructure that will allow them to enter the market in an orderly way.

Meanwhile, Bitcoin is changing hands at $4,166, gaining 4% since this time on Sunday. The largest digital asset retraced from the recent high reached at $4,200 during early Asian hours, though the short-term outlook remains positive as long as the price stays above $4,000 support level.

BTC/USD, 4-hour chart