Standard Chartered: Bitcoin may fall to $50,000

Analysts at Standard Chartered Bank said that the Bitcoin rate may continue to fall, dropping to the level of $50,000. Among the reasons, experts pointed to some trends in the crypto market and macroeconomic factors, writes The Block.

Representatives of the institution note that the asset’s drawdown below the $60,000 mark opened the way for the first cryptocurrency to a lower price range. We are talking about a fall in the asset to values ​​from $50,000 to $52,000, analysts emphasized.

The Standard Chartered team calls the five-day capital outflow from spot Bitcoin ETFs one of the main drivers for the depreciation. For example, on April 30, 2024, this asset class lost over $161 million. According to experts, last month there were only nine trading days in the “green” zone.

Another reason for the prolonged fall of Bitcoin was the weak reaction of the financial sector to the launch of cryptocurrency ETFs in Hong Kong. These investment products entered the market on April 30, 2024. On the launch day, the total trading volume barely exceeded $12 million.

Standard Chartered's head of forex and digital assets research, Jeffrey Kendrick, said that with the average purchase price of ETFs falling below $58,000, there is a risk of large-scale liquidation of crypto fund positions.

Among other problems affecting the depreciation, analysts noted macroeconomic factors. In particular, these are: a reduction in the flow of liquidity into the United States, high inflation rates, a low probability of lowering the interest rate by the Federal Reserve System, etc.

Earlier, Standard Chartered changed its forecast for spot Ethereum ETFs to a more pessimistic one. Company experts now believe that the launch of the new asset class in May 2024 is unlikely.