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    HomeBitcoinJP Morgan Predicts Bitcoin Crash To $13.000

    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 huge.

    As Bitcoinist reported immediately, FTX CEO Sam Bankman-Fried confirmed in a name together with his buyers 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 searching 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 at the moment not less than two small sparks of hope.

    JP Morgan Forecasts Gloomy Occasions For Bitcoin

    The looming insolvency of FTX continues to weigh closely on the Bitcoin worth in the intervening time. 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 yr in the past, on November 10, 2021, BTC reached its earlier all-time excessive of $69,045.00, which represents a worth drop of round 75% on the present fee.

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

    Nevertheless, in keeping with the newest report from JP Morgan, it might go even decrease because the market faces a “cascade of margin calls.” Based on JPMorgan strategists led by Nikolaos Panigirtzoglou, the Bitcoin worth might fall as little as $13,000.

    Furthermore, the analysts warn within the report that the cascade impact might be amplified because of the present situations of the market:

    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.

    Based on JP Morgan, a renewed miner capitulation deems a serious threat issue. Specifically, the U.S. banking big believes Bitcoin might fall under its manufacturing value, at the moment averaging round $15,000.

    For the time being, this manufacturing value stands at $15,000, however it’s more likely 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 vital in a bear market than a wholesome steadiness sheet. Riot has a stable steadiness sheet with minimal debt, which is mirrored of their low debt-to-equity ratio. The vast majority 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 increased debt-to-equity ratios.

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