Bitcoin Still Has Room to Fall, Says Standard Chartered

The British firm Standard Chartered has issued a new report stating that the largest digital coin, Bitcoin (BTC), still has room to decline.

Despite recent price dips, Standard Chartered's analysis suggests that the cryptocurrency could potentially fall as low as $50,000. In a Wednesday note, Geoffrey Kendrick, the report's lead author and digital assets researcher for the British company, attributed the potential decline to a "broader macro backdrop" that has become unfavorable for liquidity-driven assets like crypto.

"The driver seems to be a combination of crypto-specific and broader macro," Kendrick explained, adding that Bitcoin's break below $60,000 has opened a path towards the $50,000-$52,000 range.

Standard Chartered's Bullish Bitcoin Predictions

Despite the bearish outlook, Standard Chartered has previously made bullish predictions for Bitcoin. In April, the bank projected that the largest digital coin would reach $100,000 by the end of 2024. In July, its analysts revised their forecast to $120,000 within the same timeframe.

Just last month, Standard Chartered predicted that Bitcoin could hit $150,000 per coin by the end of the year.

Market Factors Impacting Bitcoin

Bitcoin's recent volatility has been influenced by several factors, including the approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in January. This influx of capital from investors previously unexposed to cryptocurrencies initially drove the price higher.

However, the Federal Reserve's signaling of prolonged high interest rates has dampened investor appetite for riskier assets like Bitcoin. Consequently, outflows from Bitcoin ETFs have been significant.

Despite reaching a new high in March, Bitcoin's price has since dropped by 13% in seven days, currently standing at $56,900. It has traded well below its 2021 record of $69,044 since April.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in assumes no liability for any investments made based on the information provided on this page. Independent research and/or consultation with a qualified professional is strongly recommended before making any investment decisions.

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