Experts from JPMorgan call the current crisis “another step in the reduction of margin positions”

According to Binance data, on the night of November 10, the rate of the main crypto coin fell below the $15,600 mark, and the price of ETH broke through the $1,100 level. Over the past 24 hours, the price of the most popular digital assets has fallen by 9.5% and 9.7%, respectively.

According to CoinGecko, the total capitalization of the crypto market has decreased by almost 9%. Of the largest digital currencies, BNB Coin showed the strongest drop (-12.1% in 24 hours).

JPMorgan believes that the BTC rate may drop to $13,000 amid a number of events that have recently taken place in the crypto industry. Analysts say the market’s troubles stem from FTX’s deleveraging, which could trigger “cascading liquidations.”

A team of investment bank specialists led by strategist Nikolaos Panigirtzoglou noted that crypto market players are only aware of the importance of the situation, which is developing very quickly. Experts consider the current crisis to be “the next step in reducing margin positions”, which may become a prerequisite for another fall in the BTC rate.

The dwindling number of crypto companies with strong balance sheets that could rescue low-capital, high-leverage projects, makes the current situation particularly challenging, Panigirtzoglou said.

Analysts called the bottom price of bitcoin the cost of break-even mining of the first crypto coin, which includes the cost of energy and equipment, as well as operating expenses. Today it is about $15,000.

“Right now, BTC mining costs are $15,000, but most likely, Bitcoin will reach the lows of the summer, when it fell to $13,000,” the report notes.

Analysts also do not exclude that the potential bankruptcy of FTX may be a harbinger of a situation in which other projects will also suffer.

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