Standard Chartered Bank Analysts Sound Warning Alarm: Bitcoin Price Can Still Drop To $50,000

Leading
international
cross
border
bank,


Standard
Chartered

has
predicted
steep
price
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
price
of
Bitcoin
is
trading
above
$59,000,
according
to
CoinMarketCap.
The
cryptocurrency
has
been


experiencing
massive
price
drops

after
the


Bitcoin
halving

on
April
20,
2024,
further
exacerbated
by
the
Federal
Reserve’s
(FED)
decision
to
keep
interest
rates
unchanged
during
the
Federal
Open
Market
Committee
(FOMC)
meeting
On
Wednesday,
May
1.

Standard
Chartered
bank
has
cautioned
investors
of
more
price
drops
in
the
future,
predicting
that
Bitcoin’s
price
could
settle
between
$50,000
and
$52,000,
recording
more
than
$20,000
loss
from
it’s
all
time
high
of
over
$73,000
in
March,
2024.
This
new
forecast
follows
the
bank’s
previous
projection
which
anticipated


Bitcoin
rise
to
$150,000
by
the
end
of
2024.

The
head
of
Standard
Chatered’s
forex
and
digital
assets
research,
Geoffery
Kendrick
revealed
a
combination
of
factors
that
could
drive


Bitcoin’s
decline

in
a
statement
to
The
Block
on
Wednesday.
Kendrick
highlighted
broader
macroeconomic
influences
and
crypto-specific
factors
impacting
the
price
of
Bitcoin,
particularly
challenges
like
the
reduction
of
liquidity
measures
within
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
stated.

Standard
Chartered
also
cited
the
series
of
massive


outflows
witnessed
by
Spot
Bitcoin
ETfs

in
the
US,
as
well
as
the


lackluster
performance
of
Ethereum
Spot
ETFs

in
Hong
Kong,
China. 

On
May
1,
approximately
10
US
Spot
Bitcoin
ETFs
recorded
staggering
outflows,
collectively
totaling
$563.7
million.
Kendrick
also
disclosed
that
“more
than
half
of
the
Spot
ETF
positions
are
underwater.”
He
suggests
that
the
risk
of
liquidity
should
be
considered,
especially
as
investor
sentiment
may
be
shifting
away
from
these
digital
assets.

BTC
Price
Jumps
Over
$1,000
Amidst
Market
Downturn

At
some
point
on
May
2,
Bitcoin
had
witnessed
significant
price
decreases
that
pushed
its
value
below
$58,000.
However,
currently
the
cryptocurrency
has
recorded
more
than
1.56%
increase,
spiking
by
more
than
$1,000
in
just
a
day. 

Various
analysts
have
predicted
more
plunges
for
the
cryptocurrency,
expecting


Bitcoin
to
reach
its
bottom

during
this
bearish
period.
Analysts
like


Ali
Martinez

and
Michael
van
de
Poppe
anticipate
a
few
more
price
corrections
before
the
broader
market
settles,
paving
the
way
for
Bitcoin
to
prepare
for
a
potential


bullish
rebound.

BTC price jumps above $60,000 | Source: BTCUSD on Tradingview.com

Featured
image
from
MarketWatch,
chart
from
Tradingview.com

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