JP Morgan predicted that bitcoin will lose a quarter of its value in the near future
The value of bitcoin could fall by 25 percent in the coming weeks. The collapse of the most popular cryptocurrency in the world predicted strategist on digital assets of one of the largest investment banks in the world JP Morgan Nikolaos Panigirtzoglu. His words are quoted by The Times.
The drop in bitcoin's price to $13,000 per coin could be a record since October 2020 - before the value of risky assets, including digital currencies, rose sharply amid news of COVID-19 vaccines. The expert, speculating about the minimum possible price of bitcoin, said that this cryptocurrency rarely falls below the cost of production. At the moment, mining one coin costs about $15,000, the price is made up of the cost of spent electricity, so Panigirtzoglu gives exactly this forecast.
The analyst expects investors to withdraw money from exchanges amid worsening situation with the world's third exchange FTX, which is trying to solve the company's liquidity problems. The FTX crisis could continue to unfold and spill over to other segments of the market. Bitcoin has already responded to the company's problems with a sharp collapse. For example, bitcoin fell below $17,000 per coin in trading on November 9, collapsing by more than 15.2 percent in a day. At the time of writing, the cryptocurrency was reaching the $17,300 mark.
Since the beginning of 2021, bitcoin has updated its all-time high five times, peaking at $69,000 per coin. However, after a sharp drop between March and June 2022, the cryptocurrency is in no hurry to return to the record.