JP Morgan Predicts Bitcoin Crash To $13.000

Amidst the drama surrounding the busted deal between FTX and Binance, banking big JP Morgan has commented on the present state of Bitcoin and the broader crypto market. If FTX does file for chapter, the contagion might be large.

As Bitcoinist reported right now, FTX CEO Sam Bankman-Fried confirmed in a name along with his traders shortly earlier than Binance dismissed his bailout that the opening within the steadiness sheet is $8 billion.

An nameless supply leaked that the troubled alternate is looking for bailout funding within the type of debt, fairness or a mixture of each. With Singaporean state-owned Temasak and TRON founder Justin Solar, there are presently not less than two small sparks of hope.

JP Morgan Forecasts Gloomy Instances For Bitcoin

The looming insolvency of FTX continues to weigh closely on the Bitcoin value in the meanwhile. At press time, Bitcoin was buying and selling at $17,767, down 9% during the last 24 hours and down 19% during the last seven days.

Precisely one 12 months in the past, on November 10, 2021, BTC reached its earlier all-time excessive of $69,045.00, which represents a value drop of round 75% on the present price.

Bitcoin bouncing off its new low at $15,700, 1-day-chart. Supply: TradingView

Nevertheless, based on the newest report from JP Morgan, it may go even decrease because the market faces a “cascade of margin calls.” In line with JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin value may fall as little as $13,000.

Furthermore, the analysts warn within the report that the cascade impact might be amplified as a result of present circumstances of the market:

What makes this new part 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.

In line with JP Morgan, a renewed miner capitulation deems a serious danger issue. Particularly, the U.S. banking big believes Bitcoin may fall beneath its manufacturing value, presently averaging round $15,000.

In the intervening time, this manufacturing value stands at $15,000, however it’s prone to revisit the $13,000 low seen over the summer time months.

Because of this, extra miners like Core Scientific just lately could also be pressured to promote their Bitcoin holdings, placing further promoting stress in the marketplace.

Riot Blockchain, one of many largest publicly traded Bitcoin miners, just lately launched its newest quarterly report, revealing the state of its funds and operations.

As Jaran Mellerud of Hashrate Index mentioned, nothing is extra necessary in a bear market than a wholesome steadiness sheet. Riot has a strong steadiness sheet with minimal debt, which is mirrored of their low debt-to-equity ratio. Nearly all of the highest 10 listed Bitcoin miners boast equally good and even higher numbers.

Nevertheless, with Hive, Spere 3D, DMG and CryptoStar, there are additionally 4 miners which have greater debt-to-equity ratios.

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