JPMorgan believes that the cryptocurrency industry could actually benefit from the current mayhem in the long term
In a recent note, JPMorgan analysts opined that the ongoing cryptocurrency crisis could actually move the cryptocurrency industry two steps forward.
The leading U.S. banking institution believes that the sudden implosion of the FTX cryptocurrency empire is likely to make regulators speed up cryptocurrency rules.
According to JPMorgan, the establishment of a comprehensive regulatory framework would be a boon for institutional adoption.
The bank also noted that all recent cryptocurrency collapses were from centralized industry players and not from decentralized protocols. This could potentially bode well for the decentralized finance (DeFi) sector.
As reported by U.TodayJPMorgan recently predicted that the price of Bitcoin would collapse to $13,000 due to FTX contagion, with the market struggling to deal with a cascade of margin calls.
Earlier today, the price of the largest cryptocurrency kept collapsing after the embattled cryptocurrency exchange filed for bankruptcy.
Binance CEO Changpeng Zhao recently predicted that the current cryptocurrency crisis could exacerbate, comparing it to the 2008 financial crash.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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