Bitcoin’s Price Could Hit $50K, Says Standard Chartered

As a researcher with a background in finance and experience following the cryptocurrency market closely, I share Geoffrey Kendrick’s concerns about the recent drop in Bitcoin’s price below $60,000. The lack of demand for new Bitcoin and Ether ETFs in Hong Kong is a worrying sign, and the average purchase price of these ETFs being under $58,000 raises the risk of liquidation for many investors. These factors suggest that we might see further declines to around $50,000-$52,000.

As a crypto investor, I’d express my concerns similarly to this: Based on my analysis as the head of Forex and Digital Assets Research at Standard Chartered Bank, the recent drop in Bitcoin‘s price below $60,000 raises red flags for me. It seems likely that this trend will continue, potentially leading us towards a decline in value to around the $50,000 to $52,000 range.

I’ve noticed that cryptocurrencies have been experiencing increasing pressure recently, as newly introduced Bitcoin and Ether Exchange-Traded Funds (ETFs) in Hong Kong have failed to generate significant demand for the past five consecutive days.

As a crypto investor, I’ve observed that the average cost basis for my ETF investments has dropped below $58,000. This development increases the likelihood of forced liquidations since more than half of these ETF positions are currently showing losses.

In spite of Bitcoin’s present downtrend, Standard Chartered remains bullish about its future worth. In March, the bank raised its Bitcoin price forecast for the end of 2024 from $100,000 to $150,000. The bank attributes this increase to anticipated large-scale investments in Bitcoin spot ETFs and growing interest from foreign exchange reserve managers. Kendrick further speculates that the digital currency could reach $250,000 by 2025. He adds that the market’s optimistic sentiment and geopolitical factors like the US presidential election will influence the timing of this potential price surge, which could occur later in the year if conditions remain favorable.

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2024-05-01 17:08