The leading cryptocurrency Bitcoin (BTC) has slumped significantly after the shock collapse of FTX and Alemada Research this week. In the wake of the FTX crisis, cryptocurrency markets and exchanges are facing a regulatory warning.
Lower levels are on the way for Bitcoin price!
BTC price dropped more than 70 percent from its ATH of $69k a year ago to $17,000. Some cryptocurrency analysts fear that the crash may be about to get worse. Analysts at Wall Street giant JPMorgan have released a shocking Bitcoin price forecast. Following the FTX collapse, the bank warned that the leading cryptocurrency could drop another 25 percent. JPMorgan analysts led by Nikolaos Panigirtzoglou said about their prospects:
What makes this new phase of crypto-leverage reduction more problematic, caused by the blatant collapse of Alameda Research and FTX, is the shrinking in its ecosystem of organizations with stronger balance sheets that can bail out those with low capital and high leverage.
Analysts say that the price of Bitcoin will fall below $13,000 due to the “series of margin calls” after the recent FTX crisis following the events of this year. It is also likely to point to BTC production costs.
After the collapse, Terra (LUNA) came to the fore again
Analysts also recall the Terra crisis experienced last May:
Given the size and connectivity of FTX and Alameda Research’s DeFi (decentralized finance) platforms with other assets of the crypto ecosystem, a new string of margin calls, leverage reductions and crypto company/platform failures seems likely to begin similarly. This is what we saw last May and June following Terra’s collapse.
After the collapse of the Terra ecosystem, the local altcoin LUNA was almost zeroed. Along with this, his stablecoin has also lost its peg to the dollar. After the collapse in Terra, some companies declared bankruptcy.
JP Morgan analysts say Bitcoin price could drop further as full damage unfolds
It was reported that FTX had $10 billion on its balance sheet after user deposits came in with Alameda’s trading funds. This ratio revealed how big the collapse was. FTX filed for bankruptcy this week. It is then estimated that between $10 billion and $50 billion in assets, liabilities and more than 100,000 victims.
According to JPMorgan’s analysis, the FTX crisis could create a tide much like what happened on Terra. Analysts also used the following statements:
It’s likely to happen unless a quick recovery decision is made for Alameda Research and FTX.
As we have reported as Kriptokoin.com; However, the crypto community does not expect a quick solution to the price crash caused by FTX. Anto Paroian, CEO of cryptocurrency hedge fund ARK36, responded to comments on the subject:
It will be weeks before we see the full extent of the damage done.
Despite widespread price panic, some cited previous market declines as evidence of an eventual recovery. Akeel Qureshi, a contributor to the Hubble protocol and Kamino Finance on the Solana blockchain, said via email:
The market is taking a hit. But volatility in the cryptocurrency markets has historically led to tremors that have strengthened the field in the long run.
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