- Chief Economist Peter Schiff tweets that BTC could plunge more than 70%.
- Head of Research states that investors lose confidence in digital assets as more crypto firms face a liquidity crunch.
- Robertson predicts that gold could gain value by 30% to $2,250 per ounce.
Chief Economist and Global Strategist Peter Schiff shared a tweet where Standard Chartered Bank predicts Bitcoin to plunge by 70% to $5,000. Additionally, while adding more insight into the post, Schiff mentioned that $5,000 would not be the lowest that BTC could tank.
The Standard Chartered Bank outlined the possible scenarios that “we feel are under-priced by the markets” in a note titled “The financial-market surprises of 2023.”
Elaborating more on why the bank believes that BTC will tank in 2023, Eric Robertsen, Global Head of Research at Standard Chartered Bank said:
Yields plunge along with technology shares, and while the Bitcoin sell-off decelerates, the damage has been done.
Furthermore, Robertsen stated that more and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.
Subsequently, Robertson drove his argument home and said that somewhat extreme scenarios “have a non-zero probability of occurring in the year ahead, and … fall materially outside of the market consensus or our own baseline views.”
Moreover, Robertson pointed out that BTC has fallen by over 60% after a string of high-profile collapses that infested the crypto market. As such, Robertson predicted that the fall of BTC would see gold rallying.
As many crypto firms succumb to liquidity squeezes, Robertson argued that the price of gold could potentially rally 30% to $2,250 per ounce.
Meanwhile, Schiff who is a critic of BTC and a proponent of gold, has on many occasions weighed out the advantages of using gold against the volatility of BTC.
In a follow-up tweet to the above tweet, Shiff mentioned:
A couple of economic data points that beat expectations is no reason to sell #gold or #silver.
Shiff further stated that traders need to turn off the computer algorithms and think for themselves.
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