By Larry Wright
Crypto winter has become a drawing room topic all around the world. The DeFi ecosystem is undergoing a metamorphosis, like the stock markets, banking systems, and the internet. After scoring an ATH of $69K last year in November, Bitcoin prices have reportedly plunged more than 50%.
The latest report by JPMorgan analysts has painted a bleak picture for the top coin. Referencing the decline of FTX, the analysts at JPMorgan project that the prices of Bitcoin can drop lower than $13K per unit.
The abysmal factor in this projection is that the projected drop cost of Bitcoin is lower than its production cost, which is estimated to be around $15K per unit.
Whale Investors and Margin Calls
Bitcoin has made a lot of institutions and investors a lot of profits. However, since last year Bitcoin investors have been sticking to the tenets of long-term investing. The reports by JPMorgan suggest that whale investors with leveraged positions in Bitcoin are going to face a series of margin calls.
It is worth noting that the price of Bitcoin has been reduced to around $15K per unit after the margin call. However, at press time, the prices of Bitcoin are valued at around $17K. The decline of Bitcoin and cryptocurrency retracements is interesting under the pretext of approaching elections season in the USA.
While JPMorgan has not issued cushioned projections for Bitcoin prices, some other reports are more pessimistic. Mark Newton is the head of Fundstrat, working in the technical strategy wing. As per his latest predictions, Bitcoin prices can plunge lower than $13K.
The sugarcoat-sans projection by Newton claims that Bitcoin prices can drop to $10K. At the same time, he is also certain that bears can take control of the market to take the Bitcoin prices lower despite the abnormal volatility patterns.
The biggest reason for the concerns among cryptocurrency holders is that thus far, Bitcoin has carried the entire cryptocurrency market on its back.
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