Bitcoin Bitcoin/USD could plunge to $13,000 levels amid a ‘margin call cascade’ in the wake of the ongoing crisis in FTX cryptocurrency exchangeWhen, JP Morgan.
What happened: The JP Morgan team led by Nikolaos Panigirtzoglou wrote in a note saw According to Bloomberg, “This new phase of crypto deleveraging is driven by apparent collapse. Alameda Research A more problematic aspect of FTX is the decreasing number of companies with stronger balance sheets that can save less capitalized and highly leveraged companies in the crypto environment.
Panigirtzoglou and his team used Bitcoin’s cost of production to measure how much its price would drop.
“Right now, this one costs $15,000 to manufacture, but it could go back to the $13,000 lows we saw in the summer.”
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Important reasons: Strategists say investors are still grappling with FTX.com’s lack of liquidity Alameda Research — both founded by Sam Bankman-FriedThey said the contagion could spread, Bloomberg reported.
On Wednesday, Binance said it would not acquire FTX after due diligence. Cryptocurrency price crash.
Bankman-Fried has reportedly told FTX investors that without liquidity from Binance, the cryptocurrency exchange faces bankruptcy.
Bitcoin Bitcoin/USD It traded 10.4% lower at $16,450.70. ethereum Ethereum/USD It has dropped 10% to $1,178.50 at the time of writing. BTC and ETH hit intraday lows of $15,682.69 and $1,083.29 respectively.
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