HomePress CoverageAnalysts at JPMorgan see Bitcoin fall to $13,000 amid 'cascade of...

Analysts at JPMorgan see Bitcoin fall to $13,000 amid ‘cascade of…

Bitcoin BTC/USD could fall to $13,000 amid a “cascade of margin calls” in the wake of the ongoing crisis FTX Exchange of cryptocurrenciessaid the strategists working for JP Morgan.

What happened: The JPMorgan team led by Nikolaos Panigirtzoglou wrote in a note, seen from Bloomberg: “What constitutes this new phase of crypto deleveraging brought on by the apparent collapse of Alameda Research and FTX More problematic is that the number of companies with stronger balance sheets, able to bail out those with low capital and high leverage, is shrinking in the cryptocurrency environment.

Panigirtzoglou and his team used Bitcoin’s production costs to estimate how much the price could fall.

“Right now, that production cost is $15,000, but it’s likely to revisit the low of $13,000 seen over the summer months.”

See also: Best cryptocurrency exchanges

Why it matters: Strategists said investors are still grappling with a liquidity crunch at FTX.com Alameda Research — both founded by Sam Bankman Fried. They said there were fears the contagion could spread, Bloomberg reported.

On Wednesday, Binance said it would not acquire FTX after careful consideration, resulting in a Cryptocurrency price collapse.

Bankman-Fried reportedly told FTX investors that without Binance liquidity, the cryptocurrency exchange is facing bankruptcy.

Bitcoin BTC/USD was traded 10.4% lower at $16,450.70 during ether ETH/USD down 10% at the time of writing to $1,178.50. BTC and ETH hit daily lows of $15,682.69 and $1,083.29, respectively.

Continue reading: This US Senator wants new regulations to protect consumers in the wake of the FTX-Binance debacle

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