Leading international cross-border bank, crypto-401k-market-poised-to-enter-bitcoin-etfs-standard-chartered-analyst-says/” rel=”nofollow”>Chartered Standard has predicted sharp price falls for bitcoinforeseeing a pessimistic future outlook for the pioneering cryptocurrency amid a broader market downturn.
bitcoin could plummet to $50,000
At the time of writing, the price of bitcoin is trading above $59,000, according to CoinMarketCap. The cryptocurrency has been bitcoin-price-suffers-sharp-decline/” rel=”nofollow”>experiencing massive price drops after the Halving bitcoin on April 20, 2024, further compounded by the Federal Reserve's (FED) decision to keep interest rates unchanged during the Federal Open Market Committee meeting (crypto-fomc-meeting-most-important-in-years/” rel=”nofollow”>FOMC) meeting on Wednesday, May 1.
Standard Chartered bank has warned investors of further price declines ahead, predicting that bitcoin price could stabilize between $50,000 and $52,000, recording a loss of more than $20,000 from its all-time high of more than $73,000 in March 2024. This new forecast follows the bank's previous one. projection that he anticipated bitcoin will rise to $150,000 by the end of 2024.
Standard Chatered's head of digital assets and forex research, Geoffery Kendrick, revealed a combination of factors that could drive The decline of bitcoin in a statement to The Block on Wednesday. Kendrick highlighted broader macroeconomic influences and crypto-specific factors affecting the price of bitcoin, particularly challenges such as the reduction of liquidity measures within the United States since mid-April.
“Liquidity matters when it matters, but against a backdrop of strong U.S. inflation data and less likelihood of rate cuts from the Federal Reserve, it matters right now,” Kendrick said.
Standard Chartered also cited the series of mass attacks bitcoin-spot-etfs-record-outflow/” rel=”nofollow”>exits witnessed by Spot bitcoin ETfs in the United States, as well as in bitcoin–ethereum-etfs-sluggish-start-hong-kong/” rel=”nofollow”>Lackluster performance of ethereum spot ETFs in Hong Kong, China.
On May 1, approximately 10 US spot bitcoin ETFs recorded staggering outflows, totaling $563.7 million. Kendrick also revealed that “more than half of spot ETF positions are underwater.” He suggests that liquidity risk should be considered, especially as investor confidence may be shifting away from these digital assets.
btc Price Jumps Over $1,000 Amid Market Crash
Sometime on May 2, bitcoin had witnessed major price drops that brought its value below $58,000. However, currently the cryptocurrency has recorded an increase of more than 1.56%, increasing by more than $1,000 in just one day.
Several analysts have predicted further declines for the cryptocurrency, expecting bitcoin-bottom-20-decline/” rel=”nofollow”>bitcoin will reach its lowest point during this bearish period. Analysts like x.com/ali_charts/status/1785702387014905880?s=46″ rel=”nofollow”>Ali Martinez and Michael van de Poppe anticipate a few more price corrections before the broader market stabilizes, paving the way for bitcoin to prepare for a potential bullish rebound.
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btc price jumps above $60,000 | Source: BTCUSD on Tradingview.com
Featured image from MarketWatch, chart from Tradingview.com
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