Leading international cross-border bank, Standard chartered has predicted steep price drops Bitcoinwhich foresees a pessimistic future outlook for the pioneer cryptocurrency amid a broader market downturn.
Bitcoin could fall to $50,000
At the time of writing, Bitcoin’s price is trading above $59,000, according to CoinMarketCap. The cryptocurrency is gone faced with huge price drops after the Bitcoin halving on April 20, 2024, further exacerbated by the Federal Reserve’s (FED) decision to leave interest rates unchanged during the Federal Open Market Committee (F.O.M.C) meeting on Wednesday, May 1.
Standard Chartered Bank has warned investors of more price drops in the future, predicting that Bitcoin’s price could settle between $50,000 and $52,000, which would mean a loss of more than $20,000 from its all-time high of more than $73,000 in March 2024. This new forecast follows the bank’s previous expectations. projection that expected Bitcoin will rise to $150,000 by the end of 2024.
Geoffery Kendrick, head of Standard Chatered’s forex and digital assets research, revealed a combination of factors that could lead to The decline of Bitcoin in a statement to The Block Wednesday. Kendrick highlighted broader macroeconomic influences and crypto-specific factors impacting Bitcoin’s price, particularly challenges such as the reduction in liquidity measures in the United States since mid-April.
“Liquidity matters when it matters, but against the backdrop of strong US inflation data and less likelihood of Fed rate cuts, it matters right now,” Kendrick said.
Standard Chartered also called the series massive outflow observed by Spot Bitcoin ETfs in the US, as well as the mediocre performance of Ethereum Spot ETFs in Hong Kong, China.
On May 1, about 10 US Spot Bitcoin ETFs recorded staggering outflows, totaling $563.7 million. Kendrick also disclosed that “more than half of Spot ETF positions are underwater.” He suggests that liquidity risk needs to be taken into account, especially as investor sentiment may turn away from these digital assets.
BTC price jumps above $1,000 amid market downturn
At some point on May 2, Bitcoin had witnessed significant price drops that pushed its value below $58,000. Currently, however, the cryptocurrency has registered an increase of over 1.56%, peaking at over $1,000 in just a day.
Several analysts have predicted even more declines for the cryptocurrency Bitcoin reaches its bottom during this bearish period. Analysts love Ali Martinez and Michael van de Poppe anticipate a few more price corrections before the broader market settles down, paving the way for Bitcoin to prepare for a potential bullish recovery.
BTC price jumps above $60,000 | Source: BTCUSD on Tradingview.com
Featured image from MarketWatch, chart from Tradingview.com
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