Bitcoin recently fell below $60,000, and it could drop to the $50,000 range again. At least that’s what Standard Chartered Bank claims, issuing a warning to investors. Here’s the analysis.

Bitcoin could drop to $50,000, according to Standard Chartered

After weeks of rising, Bitcoin’s price has become more hesitant. Although it had been holding above $63,000 since mid-April, it has experienced successive drops at the beginning of this month, even falling below the symbolic threshold of $60,000. According to Standard Chartered, this could continue.

At least that’s what Geoffrey Kendrick, the head of digital asset research, claims:

“The clear break of BTC below $60,000 has now opened a path towards the range around $50,000 to $52,000.”

For Standard Chartered, several factors suggest pessimism rather than optimism. The bank notes that the recent decline is likely linked to the poor performance of spot Bitcoin ETFs in recent days, especially those newly launched in Hong Kong. Standard Chartered also claims there is a significant risk of liquidation.

On the macroeconomic side, the bank points to the United States. Less liquidity is available across the Atlantic, following the latest inflation data. This impacts risky assets, including BTC.

$100,000 by 2025 for Bitcoin ?

That said, Standard Chartered still predicts that BTC will reach $100,000 by the end of 2024. According to the institution, one of the key indicators will be the U.S. presidential election, which could trigger a new bull run for the end of the year.

For now, BTC has been trading in a range between $56,600 and $59,900 since May 1. It has fallen 19% from its high of $73,700, reached two months ago. However, it still shows a significant gain over the last 12 months: a year ago, it was trading at $28,400.

Source : The Block, TradingView