2 weeks ago
Leading planetary transverse borderline bank, Standard Chartered has predicted steep terms declines for Bitcoin, foreseeing a pessimistic aboriginal outlook for the pioneer cryptocurrency amidst broader marketplace downturn.
Bitcoin Could Plummet To $50,000
As of penning the terms of Bitcoin is trading supra $59,000, according to CoinMarketCap. The cryptocurrency has been experiencing monolithic terms drops aft the Bitcoin halving connected April 20, 2024, further exacerbated by the Federal Reserve’s (FED) determination to support involvement rates unchanged during the Federal Open Market Committee (FOMC) gathering On Wednesday, May 1.
Standard Chartered slope has cautioned investors of much terms drops successful the future, predicting that Bitcoin’s terms could settee betwixt $50,000 and $52,000, signaling much than $20,000 nonaccomplishment from it’s each clip precocious of implicit $73,000 successful March, 2024. This caller forecast follows the bank’s erstwhile projection which anticipated Bitcoin emergence to $150,000 by the extremity of 2024.
The caput of Standard Chatered’s forex and integer assets research, Geoffery Kendrick revealed a operation of factors that could thrust Bitcoin’s decline successful a connection to The Block connected Wednesday. Kendrick highlighted broader macroeconomic influences and crypto-specific factors impacting the terms of Bitcoin, peculiarly challenges similar the simplification of liquidity measures wrong the United States since mid-April.
“Liquidity matters erstwhile it matters, but with a backdrop of beardown US ostentation information and little likelihood of Fed complaint cuts, it matters astatine the moment,” Kendrick stated.
Standard Chartered besides cited the bid of monolithic outflows witnessed by Spot Bitcoin ETfs successful the US, arsenic good arsenic the lackluster show of Ethereum Spot ETFs successful Hong Kong, China.
On May 1, astir 10 US Spot Bitcoin ETFs recorded staggering outflows, collectively totaling $563.7 million. Kendrick besides disclosed that “more than fractional of the Spot ETF positions are underwater.” He suggests that the hazard of liquidity should beryllium considered, particularly arsenic capitalist sentiment whitethorn beryllium shifting distant from these integer assets.
BTC Price Jumps Over $1,000 Amidst Market Downturn
At immoderate constituent connected May 2, Bitcoin had witnessed important terms decreases that pushed its worth beneath $58,000. However, presently the cryptocurrency has recorded much than 1.56% increase, spiking by much than $1,000 successful conscionable a day.
Various analysts person predicted much plunges for the cryptocurrency, expecting Bitcoin to scope its bottom during this bearish period. Analysts similar Ali Martinez and Michael van de Poppe expect a fewer much terms corrections earlier the broader marketplace settles, paving the mode for Bitcoin to hole for a imaginable bullish rebound.
Featured representation from MarketWatch, illustration from Tradingview.com
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