Global major bank Standard Chartered believes that the price of Bitcoin could see a further decline to around $50,000, according to recent comments.
said Jeffrey Kendrick, Head of Foreign Exchange and Digital Assets Research at Standard Chartered Bank Bloc: “BTC’s proper break below $60,000 has now reopened the way to the $50,000-52,000 range.”
As of writing, Bitcoin is trading below $57,000 after falling sharply from recent highs above $70,000. Kendrick pointed to the Bitcoin market and broader macroeconomic factors that influence the price of Bitcoin.
He highlighted five straight days of outflows from spot bitcoin ETFs in the US and a slow start for new spot bitcoin ETFs in Hong Kong as reasons for the recent withdrawal.
Away from the markets, Kendrick pointed to deteriorating liquidity measures in the United States that have put pressure on risky assets such as Bitcoin.
However, Standard Chartered and Kendrick maintain a bullish long-term outlook. The bank recently raised its target Bitcoin price for the end of 2024 to $150,000 and expects prices to reach $250,000 in 2025.
Kendrick stated that the bank's expectations remain sound, expecting the next rise to come after the US elections in 2024.
Negative sentiment stemming from the recent arrests of Binance founder Changpeng Zhao (CZ) and early Bitcoin investor Roger Ver could also be a drag.
However, the decline also comes after Bitcoin posted seven straight months of gains, indicating a potential need for consolidation.
However, mainstream adoption continues to accelerate, as seen in the huge early inflows into spot ETFs in the US. While ETFs have started trading in Hong Kong slowly, these investment vehicles should unleash significant institutional demand over time.