JPMorgan, one of the world’s largest investment banks, maintained its negative stance on the cryptocurrency market in a recent report
JPMorgan, one of the largest investment banks in the world, reaffirmed its negative outlook on the cryptocurrency market in a recent report.
The bank has expressed concern over the recent $SI network collapse, which it says is “another setback for the crypto ecosystem.”
JPMorgan’s comments come as shares of crypto-focused companies tumbled after Silvergate Capital disclosed plans to cease operations and voluntarily liquidate.
The price of Bitcoin, the world’s largest cryptocurrency, fell to an intraday low of $20,816 on the Bitstamp exchange. Shares of Coinbase fell almost 1%, and Riot Blockchain and Marathon Digital, two major crypto mining companies, saw their shares drop 2.3% each.
JPMorgan goes on to say that replacing the instant network for processing dollar deposits and withdrawals will be a difficult task. Therefore, the Silvergate implosion is a blow to the cryptocurrency industry, which relies heavily on fast and efficient payment processing networks.
The bank also points to the reversal in the CME futures spread, which indicates a deterioration in demand. This could be interpreted as a signal that investors are less confident in the future of cryptocurrency.
As reported by U.Today, the bank predicted that Bitcoin could plunge as low as $13,000 in November.