The FTX affair triggered a significant price drop for crypto assets, with Bitcoin (BTC) touching $16,000 this morning. And the fall could continue, according to analyzes by JPMorgan and Fundstrat. The point on what could await investors.
JPMorgan predicts Bitcoin at $13,000
“A cascade of margin calls.This is the term used by JPMorgan to describe the situation this week, when the price of Bitcoin (BTC) plunged. The fall of the giant FTX, unprecedented and unexpected, has considerably shaken the cryptocurrency markets, and the confidence of investors.
Hence a prediction from the financial institution: it will probably be necessary to expect further falls. According to Nikolaos Panigirtzoglou, analyst at JPMorgan, the links between different major players make the situation worse:
“What makes this new phase […] 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 […] is decreasing.»
Translation: Binance was able to come to the rescue – temporarily – but the number of companies that can play the savior necessarily decreases, as the markets plunge.
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Production costs have increased
Another factor to consider: the cost of producing one bitcoin, which is related 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:
“It is likely that [le coût de production] revisit the 13,000 dollars that we saw during the summer months.»
Will we then see BTC fall to this level? It is possible, and according to an analyst from Funstrat, Bitcoin could even drop below $10,000. Carl Quintanilla thus explained a few hours ago that this capital threshold is no longer so solid as that:
“.. #Bitcoin breakdown likely leads to 13k before any support .. Breaks of this given the abnormally high volatility seen during these declines can’t be ruled out and $9.96k-$10k would also have importance ..” – @MarkNewtonCMT pic.twitter.com/eC71EPFCE4
—Carl Quintanilla (@carlquintanilla) November 10, 2022
“The fall of Bitcoin probably leads to $13,000, before finding another support. The breakout of this given the abnormally high volatility […] cannot be excluded, and […] the $9,960 to $10,000 levels could also be important.»
One thing is certain: the time when the community affirmed as a mantra “BTC never goes back below its previous ATHis now over.
All this shows in any case how much things can change quickly in the ecosystem. Last week, the community was excited that BTC once again managed to hold $20,000. This week, it will be content to hang on to $15,000, if Bitcoin does not dip further.
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Source: BNN Bloomberg
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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