Janice R. Andrews
Recently, Bitcoin fell below a crucial support level in the turbulent world of cryptocurrencies, raising fears about a possible fall. Standard Chartered’s views indicate that there may be a substantial reduction in the main digital asset, with a potential drop of more than 13% to $50,000. Numerous macroeconomic reasons have slowed the once-booming surge, leading to this grim study.
As of this writing, Bitcoin has fallen below the $58,000 threshold and is currently trading at $57,790. Standard Chartered’s Head of FX Research, Geoff Kendrick, noted that this slide below significant levels may open the door for more drops. A number of variables are blamed for the decrease, including dwindling US liquidity levels and investments in spot bitcoin exchange-traded funds.
Kendrick emphasized that the current price of US spot ETFs is less than the average ETF purchase price of around $58,000, and that there has been a worrying trend of withdrawals from these funds for the previous five days. This scenario might result in liquidation and more negative pressure on Bitcoin prices since it puts a large chunk of ETF investments in a risky position.
Furthermore, the market did not receive the much-needed respite following the recent introduction of six bitcoin and ether spot ETFs in Hong Kong. Positive mood was muted by these funds’ limited turnover volume, despite their optimistic net asset positions. Additionally, Kendrick observed the lowering liquidity measures in the US since mid-April, further increasing the negative impact on Bitcoin.
Nevertheless, Standard Chartered continues to have an optimistic view on Bitcoin in spite of these difficulties, citing a long-standing prediction that it will rise to $150,000 by year’s end. Reiterating this bullish outlook, Kendrick highlighted the role played by the recent halving event in the asset’s upward trend. It is anticipated that less fresh supply would be produced, lessening the requirement for significant ETF inflows to maintain price momentum.
Notably, cryptocurrency aficionado Mike Novogratz is still upbeat about Bitcoin’s durability, speculating that any drop below $50,000 will probably be followed by a big increase. Novogratz highlights the possibility for long-term development despite short-term swings by attributing the recent surge less to macroeconomic issues and more to increased investor acceptance of the cryptocurrency.
Due to its struggles with diminishing macroeconomic factors and liquidity issues, Bitcoin is going through a difficult time. The digital asset might potentially see a decline, according to Standard Chartered’s cautious study, which projects a decrease of more than 13% to $50,000. Notwithstanding the prevailing uncertainties, the cryptocurrency community remains sanguine, supported by extended positive projections and the assurance of sustained adoption. Investors continue to be on the lookout as things change, handling the cryptocurrency market’s volatility with caution and strategic forethought.
