Bitcoin has dominated the cryptocurrency market since its inception. Due to its limited application, Standard Chartered Bank provided a surprising prediction of the price of Bitcoin.
Bitcoin (BTC) has set the cryptocurrency trend for the longest time. A bullish bitcoin that has turned into a bullish market, and vice versa, with small amounts like Luna Classic.
Standard Chartered is an international bank headquartered in the UK that provides consumer, treasury, corporate and banking services.
Standard Chartered Bitcoin Price Forecast
Eric Robertson, the bank’s head of global research, shared the forecast.
A further fall of Bitcoin from around 70% to $5,000 in the next year is one of the “surprising” scenarios where markets may be “underpriced”.
Eric Robertson, Head of Global Research, Standard Chartered Bank
A sharp decline in the price of Bitcoin will reverberate throughout the industry.
A quick look at the proof of reserves shared by centralized exchanges reveals a significant BTC holdings. For example, Bitfinex holds 45.34% of its holdings in Bitcoin, while CoinCoin holds 17% of its holdings. A fall in BTC of this magnitude would lead to the collapse of the entire industry similar to FTX, where exchanges would not be able to meet their customers’ deposits.
Eric added that demand will shift from Bitcoin to gold, leading to a 30% increase. The rapid decline in value is due to the increase in interest rates caused by the involved economies, the future market crash and the decrease in investor confidence in digital currencies.
Below is a Bloomberg chart showing how Bitcoin has compared to gold over time, which shows that Bitcoins value is falling against gold.
Robertson added that the dynamics in 2023 will see the price of gold rise to $2,250 per ounce. Nicholas Frapel, of ABC Refinery, shared similar sentiments about gold benefiting from the shortcomings of the crypto industry.
What’s next for Bitcoin?
Analysts offer varying predictions for Bitcoin, few as harsh as Standard Chartered Bank’s. BTC probably had its best days in 2021 and is gradually losing its appeal. The coin is trading 75% below its all-time high of $68,789.63 set in November 2021.
The sad reality of the state of the crypto industry raises questions about the future. Proponents argue that the future of WEB3 is blockchain, which has many applications outside of crypto. If this holds water, Bitcoin could lose its position at the top of the market, allowing more utility-based coins like Ethereum to lead the market.
The collapse of FTX and its sister companies was an eye-opener to the reality that companies are now factoring in their inherent risk. Decentralized finance (DeFi) is also at risk. In the latest incident, hackers stole trillions of aBNBc tokens from the ANKR blockchain protocol.
On-chain statistics show that Bitcoin withdrawals from exchanges are increasing as people look for a safer haven for their coins. Watcher.Guru estimates that $1.8 billion (109,133 BTC) has been withdrawn from cryptocurrency exchanges in the past 30 days.
However, Pantera Capital, the world’s largest crypto investment fund, provided a different prediction for Bitcoin’s price in November. The company provided a more analytical forecast by factoring in BTC supply dynamics. They suggested that Bitcoin would trade at $36,000 before the next halving event and reach $149,000 in 2024.
At press time, Bitcoin was steady at $17,240, up 1.66% in 24 hours. The cryptocurrency market with a market cap of $865.22 billion shares a similar performance of 1.67% in 24 hours.
Also read Bitcoin price prediction 2023 to 2031.