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

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

Standard Chartered Bank says the price of bitcoin could drop to $5,000 next year. The bank’s analyst explained that cryptocurrencies could fall further and more crypto firms could “succumb to liquidity squeezes and investor withdrawals.” Standard Chartered Bank’s $5K Bitcoin Scenario

Standard Chartered Bank published a note titled “The financial-market surprises of 2023” Sunday. The note outlines a number of possible scenarios that “we feel are under-priced by the markets,” wrote Eric Robertsen, Standard Chartered’s global head of research.

One of the scenarios is bitcoin’s price dropping to $5,000 next year, which would be about a 70% drop from BTC’s current price of around $17,000.

Robertsen detailed: Yields plunge along with technology shares, and while the bitcoin sell-off decelerates, the damage has been done. More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.

The Standard Chartered analyst clarified that the extreme scenarios outlined “have a non-zero probability of occurring in the year ahead, and … fall materially outside of the market consensus or our own baseline views.”

While noting that cryptocurrencies could “fall further” and more crypto firms could “succumb to liquidity squeezes and investor withdrawals,” Robertsen said gold could rally as much as 30% to $2,250 per ounce and re-establish itself as a safe haven. He described: The 2023 resurgence in gold comes as equities resume their bear market and the correlation between equity and bond prices shifts back to negative.

Commenting on Standard Chartered Bank’s $5K bitcoin price outlook, gold bug and economist Peter Schiff reiterated his prediction that BTC has much further to fall. He tweeted Monday: Bitcoin has far more downside risk than 70%. After such a decline bitcoin will still be way over-priced, so $5,000 will not even be close to the bottom.

Recently, veteran investor Mark Mobius said that bitcoin could fall to $10,000 next year as the Federal Reserve continues to hike interest rates and tighten monetary policy.

However, some people are still optimistic about the price of bitcoin. Venture capitalist Tim Draper, for example, has doubled down on his BTC price prediction of $250,000 by the middle of next year. Tags in this story Standard Chartered, Standard Chartered Bank crypto, standard chartered bitcoin, Standard Chartered bitcoin prediction, Standard Chartered btc, standard chartered crypto, standard chartered cryptocurrency, Standard Chartered scenarios

Do you think bitcoin will drop to $5,000 next year? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. This Week’s NFT Sales Slid 5% Lower Than Last Week, Ethereum NFT Sales Accounted for 76.8% of the Volume MARKETS AND PRICES | 10 hours ago Veteran Investor Mark Mobius Expects Bitcoin Price to Fall to $10,000 MARKETS AND PRICES | 6 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleThis Week’s NFT Sales Slid 5% Lower Than Last Week, Ethereum NFT Sales Accounted for 76.8% of the Volume Next articleIndia’s Central Bank Digital Currency Should Be Able to Do Anything Cryptocurrency Can Do With No Risk, Official Claims Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin