Banking and investment giant JPMorganhis negative outlook on the cryptocurrency market in a recent report kept.
The bank claims it’s a period of “another setback for the crypto ecosystem” silvergate shared his concerns about the recent collapse of his network.
The comments from JPMorgan came after Silvergate Capital announced plans to end operations and liquidate ‘on demand’. As Koinfinans.com reported, this development has reduced the price of crypto-focused stocks as well as tokens.
bitcoin price It is hovering around $20,000. Shares of Coinbase fell almost 1%, and shares of two major crypto mining companies, Riot Blockchain and Marathon Digital, each dropped 2.3%.
JPMorgan believes that replacing the instant network for deposits and withdrawals of dollars will be a difficult task. As such, Silvergate’s downfall was that it heavily relied on fast and efficient payment processing networks. cryptocurrency This is a very important and negative development for the industry.
The bank also highlights the reversal in the CME futures spread, which is indicative of a deterioration in demand. This could be interpreted as a sign that investors are less confident in the future of the cryptocurrency. The bank stated that it is possible for the Bitcoin price to drop to $13,000 by November.
You can follow the current price action here.