JPMorgan believes that the crypto market is going to receive a major blow which would stem from the potentially sad demise of FTX and Alameda Research from the crypto industry.

According to the global investment bank, an economic crunch could be seen in the crypto economy very soon which would have the potential of taking Bitcoin’s value below US$ 13,000.

JPMorgan’s Analysis of Events Impacting the Crypto Market

Under the auspices of Nikolaos Panigirtzoglou, a team of analysts from JPMorgan Chase analyzed the events which could potentially impact the crypto markets.

At least two future events have been indicated by JPMorgan Chase’s analysts that can lead to devastating effects on the crypto market.

Global banks high-profile team of analysts particularly focused on the possible outcomes stemming from FTX and Alameda.

While noting FTX’s financial difficulties, the analysts also provided their prediction pertaining to the lead crypto coin, Bitcoin.

Causes of Deleveraging In the Crypto Industry

According to the analysts, there are some players in the digital economy sector who come in aid of their weak counterparts.

Analysts explained in a note that the existing deleveraging occurring in crypto markets is because of the downfall of Alameda Research.

They further noted that the deleveraging has further been fueled by FTX, which too has collapsed recently.

Analysts also took note of another factor that is more devastating than the collapse of FTX and Alameda.

The analysts explained that currently in the crypto industry there are a large number of companies whose balance sheets are extremely strong. Companies with strong balance sheets are coming in aid of low capital companies.

Resultantly, high leverage is alarmingly and rapidly shrinking.

Subsequent Collapse of and Alameda Research

JPMorgan’s assessment can be proven by the fact that FTX’s CE, Sam Bankman-Fried, sought help from leading crypto exchanges like OKEX and Coinbase.

However, when the assistance request was refused by the two leading firms, FTX’s CEO then knocked at the doors of Binance. (It may be noted further that a week ago Binance announced the dumping of its FTX’s token holding).

Binance did not let down FTX and said that it would provide liquidity to FTX on the condition that Binance would overtake FTX.

Thereafter due diligence was carried out by Binance and Binance restrained itself from acquiring FTX or lending any support in any shape.

The word in the crypto community is that is nearing its fateful end i.e. ‘solvency’ along with Alameda Research.

Bankman-Fried, the CEO of FTX was the founder of as well as Alameda Research, then tried reaching investors who had invested their funds in

He asked them to invest in the company in order to prevent from bankruptcy.

JPMorgan’s Bitcoin Prediction

While considering the events pertaining to Alameda Research and, JPMorgan’s analysts warned investors about a possible crypto market fall.

As per their analysis, analysts have predicted that Bitcoin would very soon be traded at a price range that is lower than US$ 13,000.