Standard Chartered Bank Analysts Sound Warning Alarm: Bitcoin Price Can Still Drop To $50,000
May 03 2024 - 11:00AM
NEWSBTC
Leading international cross border bank, Standard Chartered has
predicted steep price declines for Bitcoin, foreseeing a
pessimistic future outlook for the pioneer cryptocurrency amidst
broader market downturn. Bitcoin Could Plummet To $50,000 As of
writing the price of Bitcoin is trading above $59,000, according to
CoinMarketCap. The cryptocurrency has been experiencing massive
price drops after the Bitcoin halving on April 20, 2024, further
exacerbated by the Federal Reserve’s (FED) decision to keep
interest rates unchanged during the Federal Open Market Committee
(FOMC) meeting On Wednesday, May 1. Related Reading: Crypto
Prediction Website Reveals When The Cardano Price Will Reach $45
Standard Chartered bank has cautioned investors of more price drops
in the future, predicting that Bitcoin’s price could settle between
$50,000 and $52,000, recording more than $20,000 loss from it’s all
time high of over $73,000 in March, 2024. This new forecast follows
the bank’s previous projection which anticipated Bitcoin rise to
$150,000 by the end of 2024. The head of Standard Chatered’s forex
and digital assets research, Geoffery Kendrick revealed a
combination of factors that could drive Bitcoin’s decline in a
statement to The Block on Wednesday. Kendrick highlighted broader
macroeconomic influences and crypto-specific factors impacting the
price of Bitcoin, particularly challenges like the reduction of
liquidity measures within the United States since mid-April.
“Liquidity matters when it matters, but with a backdrop of strong
US inflation data and less likelihood of Fed rate cuts, it matters
at the moment,” Kendrick stated. 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. On May 1, approximately 10 US Spot Bitcoin
ETFs recorded staggering outflows, collectively totaling $563.7
million. Kendrick also disclosed that “more than half of the Spot
ETF positions are underwater.” He suggests that the risk of
liquidity should be considered, especially as investor sentiment
may be shifting away from these digital assets. BTC Price Jumps
Over $1,000 Amidst Market Downturn At some point on May 2, Bitcoin
had witnessed significant price decreases that pushed its value
below $58,000. However, currently the cryptocurrency has recorded
more than 1.56% increase, spiking by more than $1,000 in just a
day. Related Reading: Ripple Unlocks 1 Billion XRP From
Escrow – How Will This Impact Price? Various analysts have
predicted more plunges for the cryptocurrency, expecting Bitcoin to
reach its bottom during this bearish period. Analysts like Ali
Martinez and Michael van de Poppe anticipate a few more price
corrections before the broader market settles, paving the way for
Bitcoin to prepare for a potential bullish rebound. BTC price jumps
above $60,000 | Source: BTCUSD on Tradingview.com Featured image
from MarketWatch, chart from Tradingview.com
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