Global investment bank JP Morgan says crypto markets have been hit by weeks of deleveraging triggered by the crisis at Sam Bankman-Fried’s crypto exchange FTX.com and trading platform Alameda Research. I warned you to face it. The firm’s analysts also predict that the price of Bitcoin could fall to $13,000.
JP Morgan’s FTX and Bitcoin Prices
JPMorgan Chase analysts, led by global market strategist Nikolaos Panigirtzoglou, provided an analysis of the FTX landscape and Bitcoin price forecast in a note on Thursday.
Analysts explain that there are fewer players in the crypto industry to help the weaker players, stating:
What makes this new phase of crypto deleveraging caused by the apparent collapse of Alameda Research and FTX even more problematic is the number of companies with stronger balance sheets that can bail out less capitalized and highly leveraged companies. that it is declining.
Facing a liquidity crisis, FTX CEO Sam Bankman-Fried reportedly turned to several major crypto exchanges, including Coinbase and Okx, for help. When they turned him down, he approached Binance, which initially said it would acquire FTX to provide liquidity, but after due diligence, the exchange pulled away from trading. I was.
Crypto investors are concerned about the solvency of FTX.com and trading firm Alameda Research. His Bankman-Fried, who founded both companies, reportedly told FTX.com investors that his company needed a cash injection to avoid having to file for bankruptcy.
JPMorgan warns that a “margin call cascade” is likely underway given the interactions between FTX.com, Alameda Research and the rest of the crypto ecosystem.
Global investment banks warn crypto markets could face weeks of deleveraging stemming from FTX crisis, period of upheaval could push BTC price as low as $13,000 pointed out.
JP Morgan analysts use bitcoin’s cost of production as a way to calibrate how much bitcoin’s price can fall. Here are the details:
At the moment, it costs $15,000 to produce, but could return to the $13,000 lows seen in the summer months.
At the time of writing, BTC is trading at $17,602, up 11% over the past 24 hours, but down 13% over the past 7 days.
What are your thoughts on JP Morgan analyst warnings and predictions? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.