Analysts Announce New Bottom Target For Bitcoin

New Bitcoin prediction came from JP Morgan analysts. Analysts announced a new bottom target for the leading cryptocurrency Bitcoin.

The declines in the crypto money market continued sharply after the FTX exchange went bankrupt and Binance gave up on buying FTX. After Binance announced that it gave up buying FTX yesterday evening, Bitcoin fell to the level of $ 15,500. With the positive US inflation data, the market took a breather, albeit a little. However, US banking giant JP Morgan analysts, evaluating the declines in Bitcoin and the entire crypto money market, said that the decline in Bitcoin will continue.

Analysts, who think that Bitcoin may fall as low as $ 13,000 due to the bankruptcy of FTX, stated that the FTX crisis may cause losses due to excessive leverage that can last for weeks. Analysts led by Nikolaos Panigirtzoglou stated that the crypto market will face a series of margin calls, given the interaction between FTX, Alameda Research and the rest of the crypto ecosystem.

“What makes this phase of reducing the leveraged new crypto position caused by the collapse of Alameda Research and FTX more problematic is the reduced number of institutions in the crypto space with stronger balance sheets that can bail out the low-capital and high-leverage ones.”

The cost of production is essentially the electricity required to run the powerful computers running the Bitcoin network. Pointing to the cost of production as a way to find out how much further Bitcoin can drop, JP Morgan analysts said about their BTC price predictions.

“Currently that cost of production is $15,000, but Bitcoin is likely to visit the lowest production cost level of $13,000 seen in the summer.”