JPMorgan expects the price of the cryptocurrency Bitcoin to continue to decline and reach $13,000, as more investors are forced to cover their short positions due to the recent declines.
Cryptocurrencies recorded gains today, but they have lost more than 20% of their value over the past two days.
“Our hope was to be able to support FTX clients to provide liquidity, but the issues are beyond our control or our ability to help,” Binance, which was founded by Zhang Bing Zhao, said in a statement.
It became clear within hours that rescuing FTX would be a difficult task for Binance, as its executives found themselves staring into a financial black hole (a gap between FTX’s liabilities and assets could be in the billions, possibly more than $6 billion), she said. “Bloomberg” quoted sources, and “Al Arabiya.net” reviewed it.
Moreover, US regulators are seeking to verify whether FTX properly handled client money, as well as its relationship with other parts of Bankmanfried’s crypto empire, including his trading company Alameda Research, Bloomberg News reported on Wednesday.
Zhao himself admitted that there was no “master plan” to acquire FTX, as this leaves the fate of the beleaguered exchange and its clients uncertain, sparking renewed concerns about the risks of contagion across the crypto industry.
Digital assets are falling again, with Bitcoin dropping below $16,000 after the Binance announcement.