![Bitcoin: Standard Chartered allows Bitcoin to fall to $50,000 Bitcoin: Standard Chartered allows Bitcoin to fall to $50,000](/img/61/3320/standard-chartered-allows-bitcoin-to-fall-to-usd-50000-sm.webp)
Financial experts at Standart Chartered Bank are predicting a possible continuation of the downward trend in bitcoin's value, anticipating a potential drop to the $50,000 threshold. The analysts cite various trends in the cryptocurrency market and broader economic indicators as contributing factors, The Block reports.
Representatives of Standart Chartered emphasize that bitcoin's fall below the $60,000 mark has set the stage for a move to lower price levels for the major digital currency. In particular, the prospect of a decline in the value of the asset to a range between $50,000 and $52,000 is being discussed.
According to the Standart Chartered team, a significant catalyst for this downward trajectory is the continuous outflow of capital from spot #bitcoin-ETFs over a five-day period. Notably, by April 30, 2024, losses in this asset class exceeded $161 million. Expert analysis shows that last month, only nine trading days remained in positive territory.
In addition, the financial sector's subdued reaction following the introduction of cryptocurrency ETFs in #Hong Kong on April 30, 2024 also contributed to bitcoin's prolonged decline. Despite entering the market, these investment products registered a modest total trading volume of just over $12 million on launch day.
Jeffrey Kendrick, head of forex and digital assets research at Standard Chartered, expressed fears of a possible widespread #liquidation of crypto fund positions as the average ETF purchase price falls below $58,000.
In addition to these factors, analysts have noted various macroeconomic factors affecting bitcoin's decline. These include reduced liquidity inflows to the US, rising #inflation, and a decreased likelihood of a Federal Reserve #interest rate cut, among others.
Notably, Standard Chartered recently revised its forecast for spot #Ethereum-ETFs to a more pessimistic one, suggesting that the launch of this new asset class in May 2024 may not happen as expected.
It's worth noting that bitcoin ended April with a 14.7% decline, while Ethereum experienced a more significant drop of 17.2% over the same period.