Main international financial institution Customary Chartered believes the Bitcoin worth might see additional draw back to round $50,000, in response to latest feedback.
Geoffrey Kendrick, head of foreign exchange and digital property analysis at Customary Chartered, advised The Block: “BTC’s correct break beneath $60,000 has now reopened a path to the $50,000-52,000 vary.”
As of writing, Bitcoin is buying and selling beneath $57,000 after a steep drawdown from latest highs above $70,000. Kendrick cited each the Bitcoin market and broader macroeconomic elements weighing on Bitcoin’s worth.
He highlighted 5 straight days of outflows from U.S. spot Bitcoin ETFs and the sluggish begin for brand spanking new Hong Kong spot Bitcoin ETFs as the explanations for the latest drawdown.
Past markets, Kendrick pointed to deteriorating liquidity measures within the U.S. which have put stress on threat property like Bitcoin.
Nonetheless, Customary Chartered and Kendrick preserve a bullish long-term outlook. The financial institution just lately raised its 2024 year-end Bitcoin worth goal to $150,000 and sees costs doubtlessly reaching $250,000 in 2025.
Kendrick said the financial institution’s forecast stays intact, anticipating the subsequent rally to come back after the 2024 U.S. elections.
Damaging sentiment stemming from the latest arrests of Binance founder Changpeng Zhao (CZ) and early Bitcoin investor Roger Ver may be elements within the drawdown.
Nonetheless, the pullback additionally comes after Bitcoin posted seven straight months of positive aspects, signaling a possible want for consolidation.
Nonetheless, mainstream adoption continues accelerating, as seen within the huge early inflows into U.S. spot ETFs. And whereas Hong Kong ETF buying and selling started slowly, these funding autos ought to unlock vital institutional demand over time.