The FTX drama has spillover the whole crypto market with one other 10% crash over the past 24 hours. In lower than per week, the broader crypto market has misplaced 20% of its worth i.e. equal to $200 billion.
The most recent report from JPMorgan exhibits that the crypto market is going through a “cascade of margin calls”, failing to satisfy it might trigger main liquidations available in the market. As per JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin worth might collapse all the way in which to $13,000.
The BTC worth is already down by 20% on the weekly chart. As of press time, Bitcoin is buying and selling 11.75% down at a worth of $16,143 and a market cap of $309 billion. In a report printed on Wednesday, the JPMorgan crew wrote:
“What makes this new section of crypto deleveraging induced by the obvious collapse of Alameda Analysis and FTX extra problematic is that the variety of entities with stronger steadiness sheets in a position to rescue these with low capital and excessive leverage is shrinking” within the crypto sphere.
JPMorgan on FTX-Led Massacre in Crypto
The FTX episode has unfold like a contagion available in the market. Additionally, there’s a whole lot of drama with FTX chief Sam Bankman-Fried struggling to search out information traders available in the market. A day after asserting their help 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 might result in a contagion in different crypto outfits. In consequence, traders are nonetheless coming to phrases with the FTX episode.
JPMorgan’s Bitcoin worth prediction of additional fall comes on the premise of Bitcoin’s manufacturing price to miners. As we all know, with the Bitcoin worth drop on one hand and rising power prices on the opposite, miners have been compelled to liquidate their BTC holdings to cowl their operational prices.
“For the time being, this manufacturing price stands at $15,000, however it’s more likely to revisit the $13,000 low seen over the summer time months,” mentioned JPMorgan.
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