Bitcoin Sinks Further 70% in Standard Chartered List of Possible 2023 Upsets

(Bloomberg): Speculators clinging to the view that the cryptocurrency crash is almost over are in danger of a rude awakening in 2023, according to Standard Chartered.

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A further drop of about 70% to $5,000 next year is one of the “surprise” scenarios that the market may be “undervaluing,” said the bank’s global head of research. Eric Robertsen wrote in a note on Sunday.

Robertsen said demand for bitcoin could switch from the digital equivalent of gold to the real thing, which could spur a 30% rise in the yellow metal.

The possible outcome could include a reversal of rising interest rates as the economy struggles and more cryptocurrencies “go bankrupt and investor confidence in digital assets collapses,” Robertsen said. added Mr.

He emphasized that he is not making predictions, but rather blaming scenarios that are materially out of the current market consensus.

With the collapse of Sam Bankman-Fried’s FTX exchange and sister exchange Alameda Research, the question of what lies beyond digital assets is arguably more difficult than ever to answer. There is none. The tremors spreading from the blast threaten to bring down more crypto companies and beat token prices.

For some people, much of the bad news may already be reflected in Bitcoin’s plunge of over 60% and gauge of the top 100 tokens over the past year.

“Most forced divestments are over, but the bottom line is that investors may not be compensated for near-term market risks,” Sean Farrell, head of digital asset strategy at Fundstrat, said in a report on Friday. It’s a scenario,” he said.

Farrell pointed to the ongoing uncertainty surrounding Digital Currency Group, the parent company of beleaguered crypto brokerage Genesis. Genesis creditors are looking for options to keep the brokerage out of bankruptcy.

gold outlook

Standard Chartered’s Robertsen said an unexpected market scenario in which gold surges as cryptocurrencies retreat could push precious metals to $2,250 an ounce.

Nicholas Frappel, global head of institutional markets at ABC Refinery in Sydney, said: “Gold will benefit from crypto problems with a sudden drop in trust in the crypto ecosystem.” said.

The crypto sector continues to shrink. For example, his digital asset exchange Bybit plans to cut its workforce by 30% of his.

About 94% of respondents to Bloomberg’s MLIV Pulse survey believe there will be another explosion following the FTX debacle as years of easy credit are replaced by tougher business and market conditions. increase.

Bitcoin is pretty stable at the moment. The largest crypto coin rose as much as 1.8% on Monday, trading at around $17,340 as of 2:35 p.m. in Tokyo, a nearly three-week high. Tokens such as Ether, Solana and Polkadot were also won.

For Crypto Market Prices: CRYP; Top Crypto News: TOP CRYPTO.

–With help from Sing Yee Ong.

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