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 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 newest report from JPMorgan exhibits that the crypto market is dealing with a “cascade of margin calls”, failing to fulfill it may trigger main liquidations available in the market.  As per JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin worth may collapse all the way in which to $13,000.

The BTC worth is already down by 20% on the weekly chart. As of press time, Bitcoin is buying and selling 11.75% down at a worth of $16,143 and a market cap of $309 billion. In a report revealed on Wednesday, the JPMorgan workforce wrote:

“What makes this new section 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 quite a lot 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 robust concern that any potential chapter of FTX may result in a contagion in different crypto outfits. Consequently, traders are nonetheless coming to phrases with the FTX episode.

JPMorgan’s Bitcoin worth prediction of additional fall comes on the premise of Bitcoin’s manufacturing value to miners. As we all know, with the Bitcoin worth 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.

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

Bhushan is a FinTech fanatic and holds a very good 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 constantly 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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