Last week was an important week for the cryptocurrencies industry. This started after JP Morgan announced that it will be launching its own cryptocurrency. The currency will be used for international transactions, with the goal of reducing costs, improving efficiency, and improving the time it takes to make the transactions. This news was big for two main reasons. First, JP Morgan is one of the largest banks in the world with assets of more than $2.6 trillion. It has a market capitalization of more than $350 billion and every day, it transacts more than $6 trillion for its clients. As such, its entry to the cryptocurrencies world was viewed as being a positive thing for the market. It was also viewed as a positive thing.
This week, more good news came from Europe, where a London-based blockchain company continued to sign more companies. The company is known as Vakt and has developed a blockchain product that simplifies the world of crude oil trading. The company has recruited large majors, which are responsible for two-thirds of the North Sea oil trade. Some of the companies that have signed up for the product are BP, Chevron, Shell, and Total.
In addition to this, the commodities trading industry is also in the progress of developing its blockchain product. Large companies in the industry like Archer Daniels Midlands, Bunge, Cargill, Louis Dreyfus, and Cofco are setting their own blockchain product. The goal is to simplify and digitize all the processes that the commodities industry takes.
All this comes after another report in December said that Facebook too was developing a blockchain-related product that will be used mostly for Whatsapp in India.
However, despite of all the progress, the question is whether all this has any relationship to cryptocurrencies like Bitcoin and Ethereum. A closer look at the products show no relation. For example, the JP Morgan currency will be a stablecoin, backed by the US dollar.
Perhaps, it is this recognition that has led to the sharp decline of the prices of the cryptocurrencies. In the past one week, the price of bitcoin has declined from a high of $4190 to a low of $3800. Another reason could be the criticism of the currency from Warren Buffet. As shown below, the price has been in consolidation mode as traders wait for the next move on the prices. There is a possibility that the prices will continue moving lower.