FTX collapse will continue to weigh on crypto-market sentiment, which in 2023 will lead to Bitcoin’s price dropping to $5,000. This conclusion was reached by Standard Chartered, as reported by Bloomberg.
The bank’s chief strategist at the multinational bank, Eric Robertson, noted a shift of interest from digital gold to its physical counterpart.
The above conclusion stems from a forecast that gold could rise by 30% to $2,250 per troy ounce.
This scenario could occur if major central banks halt rate hikes in 2023 after raising them in recent months. An additional factor would be a continued wave of bankruptcies among major crypto players, eroding confidence in digital assets.
Robertson emphasised that the proposed scenario is not a forecast but merely a plausible deviation from the current market consensus.
“Gold will benefit from the problems in the crypto industry in the future.”, said Nicholas Frappell, global head of institutional markets at ABC Refinery.
“Our base case assumes that most forced selling has ended, but investors may not be compensated for market risk,” said Sean Farrell, head of digital assets strategy at Fundstrat.
The expert cited ongoing uncertainty around Digital Currency Group and its OTC platform Genesis.
According to a Bloomberg MLIV Pulse poll, about 94% of respondents believe that further shocks will follow FTX’s bankruptcy as years of easy credit give way to a tougher business and market environment.
BlockFi and eight subsidiaries filed bankruptcy filing in November.
Earlier it emerged that Genesis Global Capital debt reached $1.8 billion and is likely to rise further, according to media reports.
Prior to this, Bloomberg reported Genesis creditors were seeking to prevent bankruptcy of the organisation.
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