The recent happenings in the crypto sector have signified the high instability and volatility that the market possesses. While a lot of investors across the globe have been panicking, J.P. Morgan, a leading American multinational investment bank sees the current market happenings in a different light.
As per analysts of J.P. Morgan, the ongoing market scenario triggered by the alleged collapse of FTX would prove to be beneficial. The analysts refer to it as a positive catalyst that will act in favor of the sector and help the industry move two steps forward.
The banking firm believes that the sudden implosion of one of the mega names in the industry will push the regulators to speed up their process of forming, shaping, and implementing conducive rules for the sector.
J.P. Morgan believes that the implementation of a comprehensive regulatory framework will foster the institutional adoption of cryptocurrency.
Further, it also points out that the collapses of cryptocurrencies in recent times have been triggered by centralized companies and not by decentralized institutions. Thus, this could come out to be in favor of the decentralized finance (DeFi) sector.
Earlier this week, the firm’s executives also predicted the current market downfall to continue and suggested that the market will have to deal with a cascade of margin calls. They also predicted that Bitcoin would reach the $13,000 level as reported by Todayq. The Bitcoin market hit its two-year low on November 10 at the $15,000 level.
At the time of writing, Bitcoin is recorded at $16,709.30 which is a 1.78% drop from the previous day.
Few other dignitaries in the crypto sector have also supported the view of market downfall to continue for a while and even get worse in the coming times, comparing it to the 2008 financial crisis.