- According to StanChart analysts, Bitcoin could go as low as $5,000 in 2023.
- The probable decline in BTC could lead to a rise in the price of physical gold.
- Drop in oil prices and Joe Biden’s impeachment are potential shockers for 2023.
With the “crypto bubble” bursting, the world’s first and largest cryptocurrency, Bitcoin, could fall as low as $5,000 in one scenario envisioned by analysts at Standard Chartered banking group.
As the crypto ecosystem recovers from FTX’s collapse, the multinational bank assesses Bitcoin’s potential downside in 2023.
The forecast was included in Standard Chartered’s yearly list of surprises that analysts think the markets may be ignorant about or undervaluing.
According to a Bloomberg article, Standard Chartered’s chief strategist Eric Robertsen considered a probable decline in Bitcoin’s value would be associated with a rise in the price of physical gold.
Robertsen suggested potential future scenarios for 2023 that might involve interest rate changes from prior hikes in 2022, adding to more bankruptcies in the crypto space and negative market sentiment.
The analysts believe that this might result in further declines for Bitcoin—a 70% drop from its present market value—while Gold could experience an increase of up to 30%, touching $2,250 per ounce.
According to Standard Chartered’s annual list of surprises, a decline in oil prices, Joe Biden’s impeachment as president, and a collapse in food costs are additional potential shockers that people could face in the upcoming year.
The surprise list, which is presently in its eighth edition, is meant to consider circumstances that have a non-zero possibility of occurring but are not currently part of the market consensus rather than to predict highly probable events.
According to the report, investor confidence in crypto assets could crash if more crypto firms and exchanges run short on cash, driving people back to the traditional safe haven of gold.
Throughout 2022, the value of companies on the Nasdaq 100 decreased by about 25%, and analysts linked the current market situation to an even more significant drop experienced in the early-aughts dot-com meltdown, implying that there is still more room for BTC to fall.
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