JPMorgan Expects Crypto Market to Face Weeks of Deleveraging – Warns Bitcoin Price Could Drop to $13K

Global concern slope JPMorgan has warned of the crypto marketplace facing weeks of deleveraging stemming from the situation astatine Sam Bankman-Fried’s crypto speech FTX.com and trading level Alameda Research. The firm’s analysts besides predicted that the terms of bitcoin could autumn to $13,000.

JPMorgan connected FTX and Bitcoin’s Price

JPMorgan Chase’s analysts, led by planetary marketplace strategist Nikolaos Panigirtzoglou, provided their investigation of the FTX concern and a terms prediction for bitcoin successful a enactment Thursday.

The analysts explained that less players successful the crypto abstraction are present capable to rescue weaker players, stating:

What makes this caller signifier of crypto deleveraging induced by the evident illness of Alameda Research and FTX much problematic is that the fig of entities with stronger equilibrium sheets capable to rescue those with debased superior and precocious leverage is shrinking.

Facing a liquidity crunch, FTX CEO Sam Bankman-Fried reportedly asked respective large crypto exchanges, including Coinbase and Okx, for help. When they turned him down, helium approached Binance contempt CEO Changpeng Zhao (CZ) stating that his speech is dumping each of the FTX tokens (FTT) connected its books. Binance primitively said it would acquire FTX and supply liquidity but aft owed diligence, the speech walked away from the deal.

Crypto investors are acrophobic astir the solvency of FTX.com and trading location Alameda Research. Bankman-Fried, who founded some firms, reportedly told FTX.com investors that his institution needs a currency injection to debar having to record for bankruptcy.

JPMorgan cautioned that a “cascade of borderline calls” is apt underway fixed the interplay betwixt FTX.com, Alameda Research, and the remainder of the crypto ecosystem.

The planetary concern slope warned that the crypto marketplace could look weeks of deleveraging stemming from the situation astatine FTX, noting that a play of upheaval could thrust the terms of BTC down to $13K.

JPMorgan’s analysts usage bitcoin’s accumulation outgo arsenic a mode of calibrating however overmuch further the terms of BTC tin fall. They detailed:

At the moment, this accumulation outgo stands astatine $15,000, but it is apt to revisit the $13,000 debased seen implicit the summertime months.

At the clip of writing, BTC is trading astatine $17,602, up 11% successful the past 24 hours but down13% successful the past 7 days.

What bash you deliberation astir the warnings and predictions by JPMorgan’s analysts? Let america cognize successful the comments conception below.

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