Major global bank Standard Chartered believes the Bitcoin price could see further downside to around $50,000, according to recent comments.
Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, told The Block: “BTC’s proper break below $60,000 has now reopened a route to the $50,000-52,000 range.”
As of writing, Bitcoin is trading under $57,000 after a steep drawdown from recent highs above $70,000. Kendrick cited both the Bitcoin market and broader macroeconomic factors weighing on Bitcoin’s price.
He highlighted five straight days of outflows from U.S. spot Bitcoin ETFs and the slow start for new Hong Kong spot Bitcoin ETFs as the reasons for the recent drawdown.
Beyond markets, Kendrick pointed to deteriorating liquidity measures in the U.S. that have put pressure on risk assets like Bitcoin.
However, Standard Chartered and Kendrick maintain a bullish long-term outlook. The bank recently raised its 2024 year-end Bitcoin price target to $150,000 and sees prices potentially reaching $250,000 in 2025.
Kendrick stated the bank’s forecast remains intact, expecting the next rally to come after the 2024 U.S. elections.
Negative sentiment stemming from the recent arrests of Binance founder Changpeng Zhao (CZ) and early Bitcoin investor Roger Ver could also be factors in the drawdown.
Still, the pullback also comes after Bitcoin posted seven straight months of gains, signaling a potential need for consolidation.
However, mainstream adoption continues accelerating, as seen in the massive early inflows into U.S. spot ETFs. And while Hong Kong ETF trading began slowly, these investment vehicles should unlock significant institutional demand over time.
Credit: Source link