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

The FTX drama has spillover the complete 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 going through a “cascade of margin calls”, failing to meet it could trigger main liquidations available in the market.  As per JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin price could collapse all the best way to $13,000.

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

“What makes this new phase of crypto deleveraging induced by the apparent collapse of Alameda Research and FTX more problematic is that the number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking” within the crypto sphere.

JPMorgan on FTX-Led Bloodbath in Crypto

The FTX episode has unfold like a contagion available in the market. Also, there’s a variety of drama with FTX chief Sam Bankman-Fried struggling to discover information buyers available in the market. A day after asserting their assist 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 could lead to a contagion in different crypto outfits. As a outcome, buyers are nonetheless coming to phrases with the FTX episode.

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

“At the moment, this production cost stands at $15,000, but it is likely to revisit the $13,000 low seen over the summer months,” said JPMorgan.

Bhushan is a FinTech fanatic and holds a superb aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

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