Standard Chartered Bank: Bitcoin Could Fall to $5,000 Next Year

Standard Chartered Bank says the terms of bitcoin could driblet to $5,000 adjacent year. The bank’s expert explained that cryptocurrencies could autumn further and much crypto firms could “succumb to liquidity squeezes and capitalist withdrawals.”

Standard Chartered Bank’s $5K Bitcoin Scenario

Standard Chartered Bank published a enactment titled “The financial-market surprises of 2023” Sunday. The enactment outlines a fig of imaginable scenarios that “we consciousness are under-priced by the markets,” wrote Eric Robertsen, Standard Chartered’s planetary caput of research.

One of the scenarios is bitcoin’s terms dropping to $5,000 adjacent year, which would beryllium astir a 70% driblet from BTC’s existent terms of astir $17,000.

Robertsen detailed:

Yields plunge on with exertion shares, and portion the bitcoin sell-off decelerates, the harm has been done. More and much crypto firms and exchanges find themselves with insufficient liquidity, starring to further bankruptcies and a illness successful capitalist assurance successful integer assets.

The Standard Chartered expert clarified that the utmost scenarios outlined “have a non-zero probability of occurring successful the twelvemonth ahead, and … autumn materially extracurricular of the marketplace statement oregon our ain baseline views.”

While noting that cryptocurrencies could “fall further” and much crypto firms could “succumb to liquidity squeezes and capitalist withdrawals,” Robertsen said golden could rally arsenic overmuch arsenic 30% to $2,250 per ounce and re-establish itself arsenic a harmless haven. He described:

The 2023 resurgence successful golden comes arsenic equities resume their carnivore marketplace and the correlation betwixt equity and enslaved prices shifts backmost to negative.

Commenting connected Standard Chartered Bank’s $5K bitcoin terms outlook, golden bug and economist Peter Schiff reiterated his prediction that BTC has overmuch further to fall. He tweeted Monday:

Bitcoin has acold much downside hazard than 70%. After specified a diminution bitcoin volition inactive beryllium mode over-priced, truthful $5,000 volition not adjacent beryllium adjacent to the bottom.

Recently, seasoned capitalist Mark Mobius said that bitcoin could autumn to $10,000 adjacent twelvemonth arsenic the Federal Reserve continues to hike involvement rates and tighten monetary policy.

However, immoderate radical are inactive optimistic astir the terms of bitcoin. Venture capitalist Tim Draper, for example, has doubled down connected his BTC terms prediction of $250,000 by the mediate of adjacent year.

Do you deliberation bitcoin volition driblet to $5,000 adjacent year? Let america cognize successful the comments conception below.

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