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.
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.