Banking Giant JPMorgan Says Bitcoin price could drop to $13,000

The FTX drama has spillover the whole crypto market with one other 10% crash over the past 24 hours. In lower than every week, the broader crypto market has misplaced 20% of its worth i.e. equal to $200 billion.

The newest report from JPMorgan exhibits that the crypto market is going through a “cascade of margin calls”, failing to satisfy it may trigger main liquidations out there.  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 printed on Wednesday, the JPMorgan group 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 stability sheets in a position to 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 out there. Additionally, there’s plenty of drama with FTX chief Sam Bankman-Fried struggling to seek out information buyers out there. A day after asserting their help to buying FTX’s non-U.S. property, 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. Consequently, buyers are nonetheless coming to phrases with the FTX episode.

JPMorgan’s Bitcoin value prediction of additional fall comes on the idea of Bitcoin’s manufacturing value to miners. As we all know, with the Bitcoin value drop on one hand and rising vitality prices on the opposite, miners have been pressured to liquidate their BTC holdings to cowl their operational prices.

“In the mean time, this manufacturing value stands at $15,000, however it’s more likely to revisit the $13,000 low seen over the summer time months,” said JPMorgan.

Bhushan is a FinTech fanatic and holds an excellent aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Know-how and Cryptocurrency markets. He’s repeatedly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and generally discover his culinary abilities.

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