After the FTX exchange went bankrupt and Binance stopped buying FTX cryptocurrency The decline in the market continued sharply.
After Binance said that it stopped buying FTX yesterday evening bitcoin It fell to the $ 15,500 level. With the positive US inflation data, the market took a breather, albeit a little.
However, US banking giant JP Morgan analysts, who evaluated the declines in Bitcoin and the entire crypto money market, bitcoinHe said the decline will continue.
Stating that Bitcoin may fall as low as $ 13,000 due to the bankruptcy of FTX, analysts stated that the FTX crisis may cause losses due to excessive leverage that can last for weeks.
Analysts led by Nikolaos Panigirtzoglou stated that the crypto market will face a series of margin calls, given the interaction between FTX, Alameda Research and the rest of the crypto ecosystem.
“What makes this phase of reducing this new crypto leveraged position caused by the collapse of Alameda Research and FTX more problematic is the reduced number of institutions in the crypto space with stronger balance sheets that can bail out the low-capital and high-leverage ones.”
JP Morgan analysts pointed to the cost of production as a way to find out how much further Bitcoin could drop. BTC Regarding the price predictions, he said:
“Currently that cost of production is $15,000, but Bitcoin is likely to visit the lowest production cost level of $13,000 seen in the summer.”
The cost of production is essentially the electricity required to run the powerful computers running the Bitcoin network.
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