- JP Morgan strategists predict BTC to fall below $13,000 soon.
- Ongoing FTX crises is the major cause for the current crypto crunch.
- Crypto market is down 20% in its market cap, worth $200 billion.
As the recent talk of the town, FTX crypto exchange is spreading globally, thereby causing a crash for the entire crypto market. In just this week, the crypto market has lost almost 20% of its market cap, which is around $200B.
In light of the ongoing crisis, a crypto strategist from JP Morgan reveals stating, the crypto marketplace is experiencing a “cascade of margin calls”. However, this failure will result in extensive liquidations in the market.
Moreover as the Bitcoin (BTC) price is already in a bearish state, this crucial period will create a huge impact in its prices. JPM strategists, also adds, the BTC value will crash and fall below $13000 soon.
Collapse of FTX in Crypto Market
In the last couple of days, the announcement of a significant liquidity crisis at FTX crypto exchange built a great impact on the entire crypto market. In addition, Binance CEO stepped forward to acquire FTX, creating even more buzz in the market. Surviving in the crypto space and buying the competitor shook the industry and the users. Unfortunately, Binance drops its plan in the acquisition of FTX.
Additionally, acknowledging the current critical situation, crypto investors are still coming to terms with the FTX concerns. However, such types of issues will trigger a strong fear for all the potential users and investors connected with FTX.com.
Thus, analyzing the ongoing problem, JPM team states,
“The entire crash of crypto market is influenced by the collapse of Alameda Research and FTX is that the number of firms with valid balance sheets able to rescue those with low capital and high leverage is shrinking” in the crypto space.”
According to CoinMarketCap, Bitcoin is trading at $16,435.10 with a downtrend of 7.66% in the last 24 hours. As it is fluctuating on and below $15K now, it is highly expected to fall below $13,000 very soon.