Multinational financial institution Standard Chartered has made a surprising and alarming prediction about the value of Bitcoin (BTC), the largest cryptocurrency by market capitalization. According to the bank, the value of BTC may sink to about $5,000 in 2023 which is 70% less than its current price and 93% down from its all-time high in November 2021.
This reverberates through the crypto industry as some community members were of the opinion that most of the crypto winter is almost over. In the Standard Chartered which was titled “The financial-market surprises of 2023,”, the Bank made a list of surprising possible scenarios which it “feels are under-priced by the markets.”
As per the published statement, 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. 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.”
He also added that some of these 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.”
Robertsen Compares BTC to Gold
Robertsen’s prediction was partly based on the sudden surge in the price of gold. There has been a recent surge of up to 30% in the market value of the yellow metal. While BTC is drowning, physical gold seems to be seeing an upside.
Several of these speculations have been making rounds since the collapse of the Sam Bankman-Fried’s FTX Derivatives Exchange which happened a few weeks ago. Many seem to be confused about the fall of the crypto exchange which once occupied a leading position as the third-largest digital assets service provider in the world.
The founder and then-Chief Executive Officer (CEO) of the Bahamian-headquartered crypto exchange Sam Bankman-Fried had to also resign in the face of the FTX bankruptcy filing. Crypto firms like BlockFi which was connected to the troubled crypto exchange suffered the same fate as FTX and had to file for bankruptcy in New Jersey.
Unlike Standard Chartered’s prediction, former CIA employee and popular technical specialist Edward Snowden believes that BTC will be revived soon even though it may not reach its all-time high.