Crypto Market Downturn; Bolt Drops $1.5 Bln Deal
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Bolt Financial Inc, a US cashier, said on Friday that it has dropped a $1.5 billion settlement with Wyre Payment Inc. This big statement has come amid a downturn in the crypto market.
Will the fall in the crypto market affect trades?
According to the report, Bolt decided to take this big step because the valuation of the fintech and crypto markets is collapsing over time. It said Bolt was valued at about $11 billion after a funding round earlier this year.
However, with the global crypto market downturn on the rise, very highly valued tech companies have seen tremendous pressure. Investor sentiment has also shrunk regarding digital assets as the sector trades on fears of a recession.
The report mentioned that payment processors such as Stripe Inc and Klarna Bank AB have also taken major valuation cuts. This has been a direct result of the recent price crash in the crypto market.
Bolt-Wrye continues to collaborate
Meanwhile, Bolt mentioned in a statement that it is looking to continue its partnership with Wyre. It added that maintaining independence will certainly allow it to focus on its specific areas.
Wyre continues to assist Bolt with crypto integration into their ecosystem. Although it succeeds by bringing innovative crypto infrastructure to the industry.
Earlier, the Wall Street Journal reported that this would be a mega trade in the crypto market. M&A deals have been ramping up in the US crypto sector since 2021. However, in the first quarter of 2022, some deals of around $1.25 billion were recorded. While the whole of 2021 recorded $4.9 billion in such deals.
However, in 2021, the booming crypto market shed about 2 trillion in market capitalization. All of the top cryptos are down nearly 80% from their all-time highs. The market recently fell below the crucial $1 trillion mark.
The presented content may contain the author’s personal opinion and is subject to the market situation. Do market research before investing in cryptocurrencies. Neither the author nor the publication is responsible for your personal financial loss.