JPMorgan thinks Bitcoin could drop to $13,000 after the FTX crisis

The JPMorgan team, led by Nikolaos Panigirzoglu, has predicted that the price of Bitcoin could drop to $13,000 due to concerns after the FTX crash.

The cost of producing BTC has also fallen significantly, which could be another reason for the asset’s potential decline.

bleak forecast

An analysis team from Wall Street Bank estimated that the ongoing crash in the cryptocurrency market could intensify in the following days and lead to a further decline in the valuation of Bitcoin. Experts determined that the FTX crisis and the disruption of its sister company Alameda Research led to a “series of margin calls” that could push the price of the underlying cryptocurrency as high as $13,000.

The JPMorgan team felt that the main problem was not the coincidence of the Sam Bankman-Fried exchange but the fact that there were not many organizations that could help:

“What makes this new phase of cryptocurrency downsizing caused by the apparent collapse of Alameda and FTX research even more problematic is that the number of entities with stronger balance sheets that can rescue those with low capital and high leverage is shrinking.”

The decline in the costs of producing Bitcoin is another factor. Right now, that’s $15,000, “but it will likely return to the low of $13,000 we’ve seen in the summer months,” the team said.

This event could negatively affect the bitcoin price as some market participants may see this level as the “minimum” of this crypto winter:

“The drop in the cost of production may be seen as negative for the bitcoin price outlook going forward to the extent that some market participants view the cost of production as the bottom line of the bitcoin price range in a bear market.”

Things escalated after Binance’s decision

Despite the current turmoil across the cryptocurrency ecosystem, things were expected to calm down if the troubled FTX was acquired by Binance.

But the world’s largest cryptocurrency exchange retracted its intentions yesterday (November 9), saying the latter’s problems were “beyond our control or our ability to help.”

The announcement caused more panic in the space and the global market value fell to less than $850 billion. Bitcoin, for example, has fallen to a two-year low of $15,500.

JPMorgan believes Bitcoin could drop to $13,000 after the FTX crisis first surfaced on CryptoPotato.

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