The crypto market is facing a series of events and the possibility of further decline in the future, according to “JP Morgan”
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Answer The crypto market is facing a series of events and the possibility of further decline in the future, according to “JP Morgan”
The FTX drama has extended to the entire cryptocurrency market with another 38% crash in the last 24 hours.
In less than a week, the broader crypto market lost 20% of its value, equivalent to $200 billion.
The latest report from JPMorgan shows that the cryptocurrency market is facing a series of margin calls, and failure to meet them could lead to major market liquidations.
According to JPMorgan strategists led by Nikolaus Panigerzoglu, the bitcoin price could collapse and reach $13,000.Read:Ripple’s XRP price jumps 15% for these reasons!
Bitcoin price is already down 17% on the weekly chart.
As of press time, Bitcoin is trading down 6.5% at $16,700 and a market capitalization of $320 billion.
in a report Spread On Wednesday, JPMorgan wrote:
What makes this new phase of crypto debt reduction triggered by the apparent collapse of Alameda and FTX even more problematic is that the number of entities with stronger balance sheets able to bail out low-cap, high-leverage holders is shrinking in the crypto space.
JP Morgan: Bitcoin Still Facing More Crash:
The negative FTX incident spread like an infection in the market.
Currently, there is a lot of drama with the head of FTX struggling to find investors.
A day after declaring their support for the acquisition of FTX assets, Binance backed out of the deal on Wednesday.
Now market analysts are seriously concerned that any possible bankruptcy of FTX could lead to contagion in other cryptocurrencies.
As a result, investors are still coming to terms with the FTX loop.
JPMorgan predicts further bitcoin declines based on the cost of bitcoin production.Read:Apple takes its first steps into the world of crypto and digital currencies
As it is known, the decline in the price of bitcoin on the one hand and the rise in energy costs on the other hand, forced miners to liquidate their holdings of bitcoin to cover operating costs.
He told JPMorgan:
At the moment, that cost to produce is $15,000, but you will likely reconsider the $13,000 low we saw during the summer months.
Billions exit cryptocurrency exchanges after the FTX crisis
Why did Binance hold off on acquiring FTX?
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