Bitcoin could fall to $5,000, Standard Chartered predicts

Standard Chartered predicts that Bitcoin may fall to $5,000 in 2023 as part of their research into a possible market shock next year.

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Bitcoin According to Standard Chartered, in a market shock it will fall to $5,000 next year with investors underpricing.

If that level is reached, it will mark a nearly 70% drop from Monday’s price of just $17,000 for one bitcoin.

In a note titled “2023 Financial Market Surprises,” Standard Chartered outlined a number of potential scenarios that “we feel are underpriced by markets.”

“Yields are falling along with tech stocks, and while Bitcoin sales are falling, the damage is done. More and more crypto companies and exchanges are facing insufficient liquidity, leading to further bankruptcies and investor confidence in digital assets.” collapse,” Eric Robertson, global head of research at Standard Chartered Bank, said in a Sunday note.

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Some of the more extreme scenarios “have a non-zero probability of happening in the next year, and … fall materially outside the market consensus or our fundamental views,” Robertson said.

Bitcoin has already fallen more than 60% this year after a high-profile collapse of projects and companies decimated the industry. The latest and biggest casualty is cryptocurrency exchange FTX, which has filed for bankruptcy. Disruption from the FTX release continues to spread through the market.

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A fall in bitcoin prices will also coincide with a fall in gold, Robertson said, adding that the yellow metal could rise 30% to $2,250 an ounce “as cryptocurrencies continue to fall and more crypto companies Liquidity pressures and investor outflows are being faced.”

Robertson says gold can re-establish itself as a safe haven, and investors turn to the commodity for stability during times of market volatility.

“The 2023 Revival in Gold [also] That’s when equities recover their market and the correlation between equity and bond prices turns negative again,” he added.

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Standard Chartered’s view is not the only significant view on Bitcoin. Veteran investor Mark Mobius told CNBC last week that he sees bitcoin falling to $10,000 in 2023 due to rising interest rates and the US Federal Reserve’s tight monetary policy.

However, there are still those who are bullish on Bitcoin. Venture capitalist Tim Draper told CNBC on Saturday that he thinks bitcoin could reach $250,000 next year.

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