Leading worldwide cross border financial institution, Standard Chartered has predicted steep value 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 value of Bitcoin is buying and selling above $59,000, in line with CoinMarketCap. The cryptocurrency has been experiencing massive price drops after the Bitcoin halving on April 20, 2024, additional exacerbated by the Federal Reserve’s (FED) resolution to maintain rates of interest unchanged in the course of the Federal Open Market Committee (FOMC) assembly On Wednesday, May 1.
Standard Chartered financial institution has cautioned buyers of extra value drops sooner or later, predicting that Bitcoin’s value may settle between $50,000 and $52,000, recording greater than $20,000 loss from it’s all time excessive of over $73,000 in March, 2024. This new forecast follows the financial institution’s earlier projection which anticipated Bitcoin rise to $150,000 by the end of 2024.
The head of Standard Chatered’s foreign exchange and digital property analysis, Geoffery Kendrick revealed a mix of things that might drive Bitcoin’s decline in an announcement to The Block on Wednesday. Kendrick highlighted broader macroeconomic influences and crypto-specific elements impacting the value of Bitcoin, notably challenges just like the discount of liquidity measures throughout 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 said.
Standard Chartered additionally cited the collection of huge outflows witnessed by Spot Bitcoin ETfs within the US, in addition to the lackluster performance of Ethereum Spot ETFs in Hong Kong, China.
On May 1, roughly 10 US Spot Bitcoin ETFs recorded staggering outflows, collectively totaling $563.7 million. Kendrick additionally disclosed that “more than half of the Spot ETF positions are underwater.” He means that the chance of liquidity ought to be thought of, particularly as investor sentiment could also be shifting away from these digital property.
BTC Price Jumps Over $1,000 Amidst Market Downturn
At some level on May 2, Bitcoin had witnessed important value decreases that pushed its worth under $58,000. However, at present the cryptocurrency has recorded greater than 1.56% enhance, spiking by greater than $1,000 in only a day.
Various analysts have predicted extra plunges for the cryptocurrency, anticipating Bitcoin to reach its bottom throughout this bearish interval. Analysts like Ali Martinez and Michael van de Poppe anticipate a couple of extra value corrections earlier than the broader market settles, paving the way in which for Bitcoin to arrange for a possible bullish rebound.
BTC value jumps above $60,000 | Source: BTCUSD on Tradingview.com
Featured picture from MarketWatch, chart from Tradingview.com
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