Bank of America Suggests Cryptocurrency Consolidation

Bank of America has advised cryptocurrency consolidation, saying there are too many crypto-assets in the digital market.

The firm’s suggestion comes amid the crash of digital currencies.

Financial institution analyst Jason Kupferberg said the saturation of the cryptocurrency market is similar to internet stocks in 2000, when the dot-com boom led to the emergence of numerous internet companies.

He said that in the end, only a few internet-related businesses were successful. He expects the same for the cryptocurrency market, which has around 19,800 cryptoassets floating in the air for investors to choose from.

Also Read: BUSINESS ROUNDUP: CBN Fines Three Banks N800 Million Over Crypto Transactions; Bitcoin Holders Earn N2.51tr in Two Days; Other stories

“The reality is there are too many crypto exchanges, there are too many cryptocurrencies and tokens,” Kupferberg told CNBC on Monday, adding that “it’s going to take some sort of consolidation.”

Already, the cryptocurrency market is seeing investors lose interest in hiding their funds in crypto-assets, as the total investment value of the digital currency market is down -12.47% to $971.52 billion, after enjoying a position above $1 trillion in market capitalization.

The fall in market cap was driven by the bitcoin crash, which depreciated by -14.72% in the last 24 hours, and is currently trading at $23,561.87 per BTC, with a market cap of $449.24 billion.

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