According to the researchers, retail investors will be most affected by a decline in cryptocurrency prices, while institutional investors are better protected from such an event.
“We now believe that individual investors would be the first to suffer if the market value of cryptocurrencies were to decline,” S&P Global said in a report.
“We expect established banks to be unaffected as their direct or indirect exposure to cryptocurrencies remains limited.”
Cryptocurrencies have fallen significantly in price amid sharp selling this month. The nascent market has stabilized slightly since this decline, but market capitalization is still about $330 billion from the all-time high posted last month.
However, a report from S&P Global Ratings said that a significant decline in the value of cryptocurrencies is unlikely to negatively impact the financial market.
“At this time, a significant decline in the market value of cryptocurrencies is a minor event in the financial services industry and will not disrupt stability or impact the creditworthiness of banks. that we evaluate,” said Mohamed Damak, head of financial institutions ratings at S&P Global.
According to https://www.cnbc.com
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