Major global bank Standard Chartered believes the price of bitcoin could see a further decline to around $50,000, according to recent comments.
Geoffrey Kendrick, head of digital assets and forex research at Standard Chartered, said bitcoin-price-fall-50000″>The block: “btc's proper breakout below $60,000 has now reopened a path towards the $50,000-52,000 range.”
At the time of writing, bitcoin is trading below $57,000 after a sharp drop from recent highs above $70,000. Kendrick cited both the bitcoin market and broader macroeconomic factors weighing on the price of bitcoin.
He highlighted five consecutive days of US bitcoin spot ETF outflows and the slow start of new Hong Kong spot bitcoin ETFs as the reasons for the recent drawdown.
Beyond markets, Kendrick pointed to deteriorating liquidity measures in the US that have put pressure on risk assets like bitcoin.
However, Standard Chartered and Kendrick maintain a bullish long-term outlook. The bank recently raised its year-end 2024 bitcoin price target to $150,000 and predicts prices could reach $250,000 in 2025.
Kendrick said the bank's forecast remains intact and he expects the next rally to come after the 2024 US election.
Negative sentiment stemming from the recent arrests of Binance founder Changpeng Zhao (CZ) and early bitcoin investor Roger Ver could also be factors in the drawdown.
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Still, the pullback also comes after bitcoin posted seven consecutive months of gains, indicating a possible need for consolidation.
However, widespread adoption continues to accelerate, as seen in the first massive inflows into American spot ETFs. And while ETF trading in Hong Kong started slowly, these investment vehicles should unlock significant institutional demand over time.
