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Standard Chartered cut its bitcoin forecast by 33% and expects a drop to $50,000
Standard Chartered lowered its bitcoin price forecast for the second time in less than three months, warning that the cryptocurrency could fall to $50,000 before a recovery begins. Bloomberg reports this.
The bank now expects bitcoin to be worth $100,000 by the end of 2026, which is significantly lower than the previous forecast of $150,000. In December, the lender had already revised its target down from $300,000.
The latest revision came after a turbulent period for digital assets: bitcoin has struggled following the market crash in October, which was followed by ongoing bouts of volatility and shifting risk appetite.
As of Thursday at 13:43 GMT, bitcoin was trading nearly unchanged around the $68,000 mark.
“We expect further price capitulation over the next few months,” wrote Geoffrey Kendrick, the bank’s head of digital asset research, in a note.
Kendrick pointed to outflows from exchange-traded funds and a worsening macroeconomic backdrop. Assets in bitcoin ETFs have fallen by nearly 100,000 tokens compared to the peak on October 10. The average buyer is now at a loss, having an entry price of around $90,000, the note said.
The bank also warned that “the macroeconomic risk backdrop is becoming increasingly complex — the U.S. economy may be slowing, but markets do not expect further rate cuts” until Kevin Warsh takes the role of Federal Reserve chair later this year. This could restrain new inflows into crypto assets in the coming months, the review noted.
According to data compiled by Bloomberg, after the sell-off on October 10, investors withdrew nearly $8 billion from U.S.-listed spot bitcoin ETFs.
See also: "Bitcoin may fall to $50,000 in the coming weeks, Kendrick warns"
