Bitcoin May Plunge To $13,000 On Crypto Exchange Suro – News
Analysts at JP Morgan have predicted that the shockwaves of an FTX collapse could send Bitcoin 80 percent below its all-time peak of $70,000 by November 2021, as firms are hit by a “cascade of margin calls.”
A woman walks past an advertisement for the Bitcoin cryptocurrency in Hong Kong. Bitcoin once again fell below $17,000 on Saturday to an intraday low of $16,543.48, less than 24 hours after hitting a high of $17,480.18, when it was reported that a hack at FTX had taken place. — AP
Bitcoin could fall as low as $13,000 amid ongoing crypto market turbulence sparked by the implosion of digital asset exchange FTX — a unicorn startup recently valued at $32 billion — is just the latest in a series of grim news for bitcoin investors , ethereum and other digital assets, JP Morgan has warned.
In the wake of the plunge for the digital asset exchange, Bitcoin once again fell below $17,000 on Saturday to an intraday low of $16,543.48, less than 24 hours after hitting a high of $17,480.18 dollars, when it was reported that a hack on FTX had taken place. Ethereum also moved lower, as the token stayed below $1,300.
The crypto exchange was thrown into new trouble when the world’s largest exchange and its main rival Binance walked away from a rescue agreement.
FTX had entered into a non-binding agreement to sell itself to Binance amid a major liquidity crisis, but Binance was reportedly spooked by the state of the exchange’s books and called off the takeover.
Analysts at JP Morgan have predicted that the shockwaves of an FTX collapse could send Bitcoin 80 percent below its all-time peak of $70,000 by November 2021, as firms are hit by a “cascade of margin calls.”
A Bank of America report suggests that Bitcoin has faced the fifth-worst asset collapse in financial history, and by far the largest since the 1970s. In the past year alone, the world’s most valuable cryptocurrency has lost over 77 percent of its value. The accident is believed to be much steeper and larger in scope than that faced by Mississippi Co, South Sea Co and Roaring 20s.
Crypto analysts said the fall will be uncertain, given that Bitcoin accounts for more than 41 percent of the crypto market, and the last time it plunged to such depths was at the height of the pandemic two years ago.
However, there are optimists who believe that Bitcoin will recover from the FTX “black swan event” just like other setbacks.
“Investors don’t seem to be concerned about the impact of FTX on Bitcoin’s future,” said Alyse Killeen, founder and managing partner of venture firm Stillmark.
Killeen added that the drop in bitcoin prices that occurred even before the FTX meltdown is a sign that cryptocurrencies are not yet a true hedge against inflation and a stronger dollar.
Trading team Stockmoney Lizards claimed that this week’s events were actually nothing new for Bitcoin. Despite falling 25 percent in days, Bitcoin is not doomed as a result of the insolvencies affecting FTX, Alameda Research and possibly other major crypto companies.
“We’ve actually seen a real black swan event, the FTX bankruptcy,” Stockmoney Lizards said.
“The history of BTC is lined with such events and the market will recover from it as it did in the past.”
The turmoil at FTX is set to shake the industry after a sizzling year in the market that has seen over a trillion dollars wiped off its value. FTX, led by Sam Bankman-Fried, had been seen as one of the more stable companies in the sector and had helped a number of firms this year with emergency loans as they were rocked by a so-called crypto winter.
FTX now faces an $8 billion deficit and is teetering on the edge of collapse without support. The downturn in the market this year has already wiped out major players, including digital lender Celcius and crypto hedge fund Three Arrows Capital.
