World’s biggest digital currency faces plunge to $13,000 amid FTX liquidity crunch
Bitcoin could lose 80pc of its value amid a “cascade of margin calls” in the wake of the crisis at the FTX crypto exchange, JP Morgan has warned.
Analysts at the Wall Street bank said the world’s biggest cryptocurrency could tumble to $13,000 – an 80pc drop from its peak of over $68,000.
It comes as a liquidity crunch at FTX and Alameda Research, both founded by Sam Bankman-Fried, sends shockwaves through the volatile sector.
In a note seen by Bloomberg, the analysts wrote: “What makes this new phase of crypto deleveraging induced by the apparent collapse of Alameda Research and FTX more problematic is that the number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking.”