Standard Chartered experts warn: Bitcoin price could decline to $50,000

Standard Chartered, an international bank, has predicted a potential decline in Bitcoin’s value, projecting it to range between $50,000 and $52,000. Experts at the bank pointed out that the recent dip below $60,000 could trigger further downward movement in the asset’s price.

Standard Chartered experts warn: Bitcoin price could decline to $50,000

Key factors influencing the price dynamics, according to Standard Chartered analysts, include capital outflows from spot Bitcoin ETFs and the tepid response of the financial market to the recent launch of crypto ETFs in Hong Kong on April 30.

The analysts also highlighted the risk of liquidations for some positions due to Bitcoin’s price falling below $58,000, because over half of the positions are currently underwater. Additionally, they noted that the volume of crypto ETFs in Hong Kong remained low, contributing to the overall impact on Bitcoin’s exchange rate.

Furthermore, experts have observed a decline in liquidity in the United States since mid-April, coupled with a low likelihood of a decrease in the US Federal Reserve interest rate and persistently high inflation within the country. These factors collectively exert a negative influence on Bitcoin’s price.

Given the current scenario, analysts suggest re-entering BTC within the range of $50,000 to $52,000 or if the US consumer price index on May 15 is friendly.

Despite the anticipated correction, Standard Chartered stands by its predictions for the Bitcoin price for 2024-2025, set at $150,000 and $250,000, respectively. Experts say that the driving force behind this growth will be the influx of capital into spot BTC-ETFs and the acquisition of Bitcoin by sovereign monetary funds. Although it may take some time for prices to rebound, it’s anticipated that the asset will experience growth leading up to the forthcoming presidential elections in the United States.

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