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JPMorgan Remains Negative on Crypto. Here's Why

Thu, 03/09/2023 - 19:43
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Alex Dovbnya
JPMorgan, one of the world's largest investment banks, has maintained its negative stance on the cryptocurrency market in a recent report
JPMorgan Remains Negative on Crypto. Here's Why
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JPMorgan, one of the world's largest investment banks, has reaffirmed its negative outlook on the cryptocurrency market in a recent report.

The bank expressed its concerns regarding the recent collapse of the $SI network, which it claims is "another setback for the crypto ecosystem."

The comments from JPMorgan come as shares of crypto-focused companies fell after Silvergate Capital disclosed plans to wind down operations and voluntarily liquidate.

The price of Bitcoin, the world's largest cryptocurrency, dipped to an intraday low of $20,816 on the Bitstamp exchange. Coinbase's stock dropped by almost 1%, and both Riot Blockchain and Marathon Digital, two major crypto mining companies, saw their stock slide by 2.3% each.

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JPMorgan goes on to say that replacing the instantaneous network for processing dollar deposits and withdrawals will be a difficult task. Hence, the implosion of Silvergate is a significant blow to the cryptocurrency industry, which relies heavily on fast, efficient payment processing networks.

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 signal that investors are less confident in the future of cryptocurrency.

As reported by U.Today, the bank predicted that Bitcoin could plunge all the way to $13,000 in November.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at