The cryptocurrency market capitalization has plunged almost 70% from a record high of US$2.9 trillion in November, setting off a cascade of distress as well as speculation that several high-flying crypto operators are verging on insolvency.
For crypto critics it’s the “I told you so” moment, pointing to the unilateral freezing of customer accounts on wobbly trading platforms to support the argument the bubble has burst. Yet, most financial markets have had their bubble times, it’s the bargains left when it all goes pop that interests experienced investors. Cue Wall Street.
Goldman Sachs Group, one of the world’s biggest investment banks, is said to be looking to raise US$2 billion to buy distressed assets from Celsius Network, one of the first crypto lenders to freeze withdrawals. Several others have followed in blocking client accounts, including crypto derivatives exchange CoinFLEX last week.
Goldman, which had US$2.5 trillion in…