The FTX business triggered a significant drop in the price of crypto assets, with Bitcoin (BTC) touching $16,000 this morning. And the fall could continue, according to analysts at JPMorgan and Fundstrat. The point of what could wait investors.
JPMorgan is predicting Bitcoin at $13,000
“Shortage of margin calls.This is the term used by JPMorgan to describe the situation this week, when the price of Bitcoin (BTC) fell. The collapse of the giant FTX, unprecedented and unexpected, has shaken the cryptocurrency markets
Therefore a projection from the financial institution: it will probably be necessary to expect further falls. According to Nikolaos Panigirtzoglou, an analyst at JPMorgan, the connections between the various major players make the situation worse:
“What does this new step do […] more problematic is the fact that the number of entities with strong balance sheets, which are able to come to the rescue of those with less capital […] decreasing.»
Translation: Binance was able to come to the rescue – temporarily – but the number of companies able to act as saviors is bound to dwindle as the markets falter.
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Production costs have increased
Another factor to consider: production cost of one bitcoin, which relates to the price of electricity as well as machinery. According to JPMorgan, this cost is a good indicator of how far the price of BTC can fall. At this point, it is hovering around $ 15,000, which is precisely the level Bitcoin touched overnight. But it could go down again:
“Probably yes [le coût de production] revisit the 13,000 dollars which we saw during the summer months.»
Will we then see BTC fall to this level? Yes, and according to analysis from Funstrat, Bitcoin could even fall below $10,000. Carl Quintanilla therefore explained a few hours ago that this capital threshold is no longer that tight:
“.. #Bitcoin 13k is likely to come before any support as a result of a breakdown.. Breaks from this cannot be ruled out due to the extremely high volatility seen during these lows and $9.96k would be important- $10k too..” – @MarkNewtonCMT pic.twitter.com/eC71EPFCE4
—Carl Quintanilla (@carlquintanilla) November 10, 2022
“Bitcoin’s fall will likely lead to $13,000, before finding another support. This was broken out by the extremely high volatility […] they cannot be excluded, and […] the $9,960 to $10,000 levels may also be important.»
One thing is certain: the time when the community declared as a mantra”BTC never goes back below its previous ATHIt’s over now.
All this shows in any case how much things can change quickly in the ecosystem. Last week, the community was excited that BTC managed to hold $20,000 again. This week, it will be happy to hang on to $15,000, if Bitcoin does not drop further.
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