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Standard Chartered said bitcoin price could fall to the $50,000 to $52,000 range as outflows from US spot bitcoin exchange-traded funds (ETFs) continue amid uncertain macro outlook .
bitcoin fell below $60,000 yesterday and was trading around $57,700 at 04:49 am EST.
While speaking to The Block, Standard Chartered Bank's head of digital assets and currency research, Geoffrey Kendrick, said that this drop coincides with the increase in bitcoin ETF outflows.
On May 1, total net flows into spot bitcoin ETFs reached $564 million after five consecutive days of outflows.
<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”12.725868725869″>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF Update (May 1)
Fidelity sells 3,300 btc
GBTC sells 2,900 btc
ARK sells 1,700 btc
Blackrock sells 600 btc
Total net flows from all ETFs -9,750 twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ($564 million) pic.twitter.com/sRl6Jfz4JC
—Thomas | heyapollo.com (@thomas_fahrer) twitter.com/thomas_fahrer/status/1785866324285210839?ref_src=twsrc%5Etfw”>May 2, 2024
Kendrick noted that bitcoin was trading below the average price of $58,000 at which investors bought the ETFs. Therefore, more than half of all spot ETF positions were underwater, and some were at risk of liquidation.
He also adds that recently launched Hong Kong spot ETFs were doing little to influence market sentiment. While the crypto community has decried low turnover volumes, Standard Chartered says the net asset position of these new ETFs was commendable.
bitcoin Price Also Affected by Macro Outlook
The investment bank also said that bitcoin's performance depends on broader macroeconomic trends.
US inflation data remains strong and the Federal Reserve saying on May 1 that interest rates will remain unchanged between 5.25% and 5.50%.
Tighter policy than markets had anticipated has hit risk assets like cryptocurrencies.
“Liquidity matters when it matters, but against a backdrop of strong U.S. inflation data and less likelihood of rate cuts from the Fed, it matters right now,” Kendrick said. “Re-enter btc in the $50-52k range or if the US CPI on the 15th is friendly.”
Last month, Standard Chartered doubled down on its bitcoin prediction, saying it could reach $150,000 by the end of the year.
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