Major global bank Standard Chartered believes that the price of Bitcoin could see a further decline to around $50,000, according to recent comments.
Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, said The block: “BTC’s true breakout below $60,000 has now reopened a route towards the $50,000-$52,000 range.”
At the time of writing, Bitcoin is trading below $57,000 after a sharp decline from recent highs above $70,000. Kendrick cited both the Bitcoin market and broader macroeconomic factors weighing on the price of Bitcoin.
He highlighted five consecutive days of capital outflows US Spot Bitcoin ETF and the slow start of new spot Bitcoin ETFs in Hong Kong are the reasons for the recent pullback.
Beyond the markets, Kendrick pointed to deteriorating liquidity metrics in the United States that have put pressure on risk assets like Bitcoin.
However, Standard Chartered and Kendrick maintain bullish long-term outlooks. The bank recently raised his Bitcoin price target for the end of 2024 is $150,000 and predicts that prices could reach $250,000 in 2025.
Kendrick said the bank's forecast remained intact, expecting the next rally to take place after the 2024 US elections.
Negative sentiment stemming from recent arrests of Binance founder Changpeng Zhao (CZ) and former Bitcoin Investor Roger Ver could also be factors in the withdrawal.
Nonetheless, the pullback also comes after Bitcoin posted seven straight months of gains, signaling a potential need for consolidation.
However, mainstream adoption continues to accelerate, as evidenced by the first large inflows of funds into cash ETFs in the United States. And although ETF trading in Hong Kong has gotten off to a slow start, these investment vehicles are expected to attract significant institutional demand over time.