Standard Chartered Says Bitcoin Could Fall to $50,000
The drop in the Bitcoin price below $60,000 has opened the path back down to the $50,000-$52,000 range, according to a report by Standard Chartered.
The bank cited a combination of factors, including outflows from American spot Bitcoin ETFs and a muted response to the launch of similar products in Hong Kong, as reasons for the “new spell of difficulty.”
The risk of liquidations increased as the price of digital gold plunged below $58,000, with over half of positions in exchange-traded funds incurring paper losses, experts noted.
On the macroeconomic side, the report highlighted a decline in liquidity since mid-April and its impact on the crypto market. With the US inflation data coming in strong and a lower likelihood of a Fed rate cut, liquidity becomes a crucial factor.
Analysts recommended buying Bitcoin in the $50,000-$52,000 range or if the US CPI on May 15 is favorable.
