Banking Giant JPMorgan Says Bitcoin price could drop to $13,000
The FTX drama has spillover all the crypto market with one other 10% crash during the last 24 hours. In lower than every week, the broader crypto market has misplaced 20% of its worth i.e. equal to $200 billion.
The most recent report from JPMorgan reveals that the crypto market is going through a “cascade of margin calls”, failing to satisfy it may trigger main liquidations available in the market. As per JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin value may collapse all the best way to $13,000.
The BTC value is already down by 20% on the weekly chart. As of press time, Bitcoin is buying and selling 11.75% down at a value of $16,143 and a market cap of $309 billion. In a report revealed on Wednesday, the JPMorgan workforce wrote:
“What makes this new part of crypto deleveraging induced by the obvious collapse of Alameda Analysis and FTX extra problematic is that the variety of entities with stronger steadiness sheets capable of rescue these with low capital and excessive leverage is shrinking” within the crypto sphere.
JPMorgan on FTX-Led Massacre in Crypto
The FTX episode has unfold like a contagion available in the market. Additionally, there’s plenty of drama with FTX chief Sam Bankman-Fried struggling to seek out information traders available in the market. A day after saying their assist to buying FTX’s non-U.S. belongings, Binance has backed out of the deal on Wednesday.
Now market analysts have a powerful concern that any potential chapter of FTX may result in a contagion in different crypto outfits. Because of this, traders are nonetheless coming to phrases with the FTX episode.
JPMorgan’s Bitcoin value prediction of additional fall comes on the premise of Bitcoin’s manufacturing price to miners. As we all know, with the Bitcoin value drop on one hand and rising power prices on the opposite, miners have been compelled to liquidate their BTC holdings to cowl their operational prices.
“In the meanwhile, this manufacturing price stands at $15,000, however it’s more likely to revisit the $13,000 low seen over the summer time months,” said JPMorgan.
