Amid the drama surrounding the broken deal between FTX and Binance, banking giant JP Morgan has commented on the current state of Bitcoin and the broader crypto market. If FTX files for bankruptcy, the effects risk being too great, according to the organization. Here are the details…
Bitcoin and altcoins crash
cryptocoin.com As we reported, FTX CEO Sam Bankman-Fried confirmed in a phone call with investors shortly before Binance withdrew from the bailout that the gap in the balance sheet is $8 billion. An anonymous source has leaked that the exchange is seeking recovery funds. As it is known, there is at least a small spark of hope right now with TRON founder Justin Sun.
The looming bankruptcy of FTX continues to negatively affect the Bitcoin price at the moment. Currently, Bitcoin is changing hands at $16,724, down 4.9 percent. The coin has lost 17% in the last 7 days. Exactly one year ago, on November 10, 2021, BTC hit a record high of $69,045.00. Meanwhile, JPMorgan researchers believe that the price of Bitcoin could drop to $13,000 due to the FTX disaster. Specifically, the American banking giant believes that Bitcoin will potentially fall below its cost of production.
JPMorgan analysts comment on FTX events
According to JPMorgan’s latest report, it could drop further as the market faces a “margin call”. To JPMorgan strategists led by Nikolaos Panigirtzoglou, this risks bringing the price of Bitcoin down to $13,000. In addition, analysts warn in the report that the chaotic effect of the market may increase due to the current conditions. What makes this phase of decline more problematic, caused by the apparent collapse of Alameda Research and FTX, according to analysts, is the decline in the number of organizations with stronger balance sheets that can bail out those with low capital and high leverage.
According to JP Morgan, a renewed miner capitulation is a major risk factor. Specifically, the US banking giant believes that Bitcoin could fall below its production cost, which currently averages around $15,000. As a result, more miners are forced to sell their Bitcoin holdings lately, according to the analyst. This indicates the potential to create additional selling pressure in the market.
What do other experts say, pointing to the decline?
Meanwhile, Fundstrat’s head of technical strategy, Mark Newton, also shared his comment. He predicts that Bitcoin will test the $13,000 level before any support. However, Newton also thinks that if there is abnormally high volatility, the bears could manage to push the biggest cryptocurrency below the $10,000 level.
On the other hand, Arthur Hayes, the former CEO of BitMEX, is among those who think we will see a bigger drop in Bitcoin. Hayes pointed to one more item besides the current movements in the market. He pointed out that if today’s US inflation data are high, the decline is likely to deepen.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.