JPMorgan Analysts Say Bitcoin Could Continue Slide Lower
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In a note published on Thursday, JPMorgan Chase analysts under the direction of global market strategist Nikolaos Panigirtzoglou offered their view of the FTX saga and a forecast for the price of Bitcoin (BTC).
Fewer participants in the crypto market are now able to help weaker players, according to the analysts, who stated:
“What makes this new phase of crypto deleveraging induced by the apparent collapse of Alameda Research and FTX more problematic is that the number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking.”
According to reports, FTX CEO Sam Bankman-Fried requested assistance from Okx and Coinbase after running out of funds. Although CEO Changpeng Zhao (CZ) said that his exchange is dumping all of the FTX tokens (FTT) on its books, he approached Binance after they rejected him. Binance first stated that it would buy FTX and offer liquidity, but after conducting due diligence, the exchange withdrew from the agreement.
Investors in cryptocurrencies are concerned about the financial stability of FTX.com and trading firm Alameda Research. Both companies’ founder, Bankman-Fried, reportedly notified FTX.com investors that his business needed an influx of cash to prevent going bankrupt.
Given the interaction between FTX.com, Alameda Research, and the rest of the crypto ecosystem, JPMorgan issued a warning that a “cascade of margin calls” is probably in progress.
The major financial institution issued a warning that the FTX crisis might result in weeks of deleveraging for the cryptocurrency industry, perhaps pushing the price of bitcoin to $13,000.
JPMorgan Analysts Foresee a BTC to $13,000
The production cost of bitcoin is used by JPMorgan analysts to estimate how much further the price of BTC can decline. They specified:
“At the moment, this production cost stands at $15,000, but it is likely to revisit the $13,000 low seen over the summer months.”
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