Standard Chartered Warns of Bitcoin’s Potential Decline to $50,000

The dip in Bitcoin’s price below $60,000 has reopened the path to the $50,000–52,000 range, Standard Chartered has warned, according to The Block.

They cited a “combination of crypto-specific and broader macroeconomic factors” as the cause of “new woes.”

The bank refers to a five-day outflow of funds from U.S. spot Bitcoin ETFs and a weak response to the launch of their counterparts in Hong Kong as the first factor.

After the digital gold’s price fell below $58,000, the risk of liquidations emerged, as more than half of the positions in exchange-traded funds bear a “paper” loss, the experts added.

Regarding macroeconomics, the experts mentioned a deterioration in liquidity indicators since mid-April, noting their impact on the cryptocurrency market.

“Amid strong U.S. inflation data and a lower likelihood of a rate cut by the Fed, liquidity matters at the moment. Enter Bitcoin in the $50,000–52,000 range or if the U.S. consumer price index [on May 15] is favorable,” the analysts recommended.

Standard Chartered maintained its targets for digital gold for 2024–2025 at $150,000 and $250,000. The drivers will be inflows into spot BTC ETFs and purchases by sovereign wealth funds.

“It might take a little time now. When we approach Trump’s victory in the elections, we could see a strong rally from September to the end of the year,” the experts explained.

Back in April, Standard Chartered expressed doubts about the approval of spot ETH ETFs in May.

Earlier, Bernstein described the slowdown in inflows into Bitcoin-based exchange-traded funds as temporary.