JP Morgan believes the crypto industry could actually benefit from the current turmoil in the long run
In a recent note, JP Morgan analysts commented That the ongoing cryptocurrency crisis could actually push the cryptocurrency industry two steps forward.
A major US banking institution believes the sudden collapse of the FTX cryptocurrency empire is likely to cause regulators to accelerate cryptocurrency rules.
According to JP Morgan, establishing a comprehensive regulatory framework would benefit institutional adoption.
The bank also pointed out that all recent cryptocurrency collapses were due to centralized industry players rather than decentralized protocols. This could bode well for the decentralized finance (DeFi) sector.
As Reported by U.TodayJP Morgan recently predicted that the price of Bitcoin would crash to $13,000 due to the FTX contagion, with the market struggling to cope with the cascade of margin calls.
Earlier today, the price of the biggest cryptocurrency continued to collapse after cryptocurrency exchanges were hit hard filing for bankruptcy.
Binance CEO Changpeng Zhao recently predicted that the current cryptocurrency crisis could get worse, comparing it to the 2008 financial crisis.