The FTX drama extended to the entire cryptocurrency market with another 38% drop in the last 24 hours.

In less than a week, the broader crypto market lost 20% of its value, equivalent to $200 billion.

A recent report from JP Morgan shows that the cryptocurrency market is facing a series of margin calls and failure to meet them could lead to a major market meltdown.

According to JP Morgan strategists led by Nicolas Panigerzoglu, the price of Bitcoin may fall and reach $13,000.

Bitcoin price is already down 17% on the weekly chart.

As of press time, Bitcoin was down 6.5% at $16,700 and a market capitalization of $320 billion.

In a report spread out On Wednesday, JP Morgan wrote:

What makes this new round of crypto debt reductions, triggered by the apparent collapse of Almeida and FTX, even more problematic is that the number of entities with strong balance sheets capable of bailing out low-cap, highly leveraged holders is shrinking in the crypto space.

JP Morgan: Bitcoin faces more downside:

A negative FTX event spread like an infection in the market.

Currently, there is a lot of drama with FTX bosses struggling to find investors.

Binance backed out of the deal on Wednesday, a day after announcing their support for the acquisition of FTX assets.

Now market analysts are seriously concerned that any possible bankruptcy of FTX could lead to contagion in other cryptocurrencies.

As a result, investors are still coming to terms with the FTX loop.

JP Morgan predicts further Bitcoin decline based on Bitcoin production costs.

As is well known, the fall in the price of Bitcoin on the one hand and the rise in energy costs on the other forced miners to liquidate their holdings of Bitcoin to cover operating costs.

He told JP Morgan:

At the moment, the cost to produce is $15,000, but you can revisit the $13,000 low we saw during the summer months.

Also read:

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