Sharp falls for Bitcoin and Ethereum at the start of the week

Sharp declines for Bitcoin (-3%; $16,003) and Ethereum (-4.6%; $1,120) at the start of the week, as investors remain wary of cryptocurrencies, following the FTX bankruptcy.

Other traders such as OKX, Crypto.com or Gemini have seen significant outbound movements in recent days and in some cases, have gone so far as to pause cash withdrawals by their clients.

In this scenario, there are firms like JP Morgan that already anticipate a fall in Bitcoin´s price to levels of $13,000, a figure that would be below its production price, which is estimated at around $15,000.

“At the moment, this cost of production stands at $15,000, but it is likely to touch again the low of $13,000 seen in the summer months,” the US bank’s experts assured.

Nikolaos Panigirtzoglou, global markets strategist at JP Morgan, believes that “what makes this new phase of cryptocurrency deleveraging induced by the FTX collapse more problematic is that the number of entities with stronger balance sheets capable of bailing out those with low capital and high leverage is shrinking.”

Mark Newton, chief strategist at Fundstrat, noted that Bitcoin will test $13,000 in the coming days. He also does not rule out the reigning cryptocurrency falling below $11,000 if there is “unusually” high volatility in the market.

César Nuez, technical analyst at Bolsamania, believes that the technical outlook for the cryptocurrency “is very bad” and it seems “very likely” that we could end up seeing an extension of the falls to the $12,300 level.