As an experienced financial analyst, I’ve closely monitored the cryptocurrency market for years, and Standard Chartered’s latest prediction of a steep decline in Bitcoin’s price is a concerning development. Having witnessed the impact of previous market downturns on Bitcoin’s value, I cannot help but feel a sense of unease as the bank forecasts a potential loss of over $20,000 from Bitcoin’s all-time high.
Standard Chartered, a renowned global banking institution specializing in cross-border transactions, has issued a warning about Bitcoin‘s price. The bank anticipates significant decreases in Bitcoin’s value and paints a gloomy picture for the pioneering cryptocurrency amidst the ongoing market slump.
Bitcoin Could Plummet To $50,000
Currently, Bitcoin’s price sits at over $59,000 based on data from CoinMarketCap. Following the Bitcoin halving on April 20, 2024, the cryptocurrency underwent significant price declines. These drops were amplified when the Federal Reserve opted against adjusting interest rates during their FOMC meeting on May 1.
Standard Chartered Bank issues a warning to investors about potential further price decreases for Bitcoin. The bank estimates that Bitcoin’s price may stabilize between $50,000 and $52,000, marking a significant loss of over $23,000 from its peak of over $76,000 in March 2024. This revised prediction contrasts with the bank’s earlier forecast, which predicted Bitcoin would reach $150,000 by the end of 2024.
Expert: The head of Standard Chartered’s forex and digital assets research, Geoffrey Kendrick, shared insights with The Block on Wednesday about what might cause Bitcoin’s price to drop. According to Kendrick, both broader economic trends and crypto-related factors are at play. Specifically, he pointed to challenges such as the U.S. tightening liquidity measures implemented since mid-April.
“The importance of having easily accessible funds is significant, especially considering the current high inflation rates in the US and decreased chances of Federal Reserve interest rate reductions. Therefore, liquidity holds significance right now.”
Standard Chartered also cited the series of massive outflows witnessed by Spot Bitcoin ETfs in the US, as well as the lackluster performance of Ethereum Spot ETFs in Hong Kong, China.
As a crypto investor, I’ve noticed an alarming trend: on May 1st, around ten US-listed Spot Bitcoin ETFs experienced significant outflows, amounting to approximately $563.7 million collectively. Kendrick further revealed that over half of these ETFs’ Bitcoin positions are currently underwater. This underscores the importance of being mindful of liquidity risks, as investor sentiment towards digital assets might be shifting.
BTC Price Jumps Over $1,000 Amidst Market Downturn
On May 2, Bitcoin experienced substantial price drops that caused its value to dip below $58,000 at some point. Contrastingly, the cryptocurrency has since seen a rise of over 1.56%, resulting in an increase of more than $1,000 in less than 24 hours.
Several analysts believe that Bitcoin will experience further drops in value during this bear market, with some predicting that it has not yet reached its lowest point. Analysts such as Ali Martinez and Michael van de Poppe expect that there will be a few more price fluctuations before the cryptocurrency market stabilizes. Once this happens, Bitcoin may be poised for a bullish recovery.
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2024-05-03 18:04