Potentially a $5,000 BTC Price in 2023, Standard Chartered Bank Reports

On Sunday, Standard Chartered Bank released a report titled “The financial-market surprises of 2023.” The memo covers a variety of eventualities that the bank believes are underpriced by markets. This according to Eric Robertsen, Standard Chartered’s global director of research.

One of the surprises in the report include the possibility of Bitcoin‘s price falling to $5,000 next year, a 70% decline from its present worth of roughly $17,000.Robertson explained:

“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.”

According to the Standard Chartered analyst, the extreme possibilities have a non-zero likelihood of occurring in the year ahead, and fall considerably outside of market consensus or our own baseline expectations.

While cryptocurrencies may “fall further” and more crypto businesses may “succumb to liquidity squeezes and investor withdrawals,” Robertsen believes gold may rise by up to 30%.

Bitcoin’s downside risk is acknowledged by many financial institutions, who this crypto winter have come out more skeptic than ever, but are also incentivized to sell this message of fear-mongering. Popular on-chain analyst Willy Woo mentioned in a recent interview that there is a potential lower bottom, but only if another industry giant such as Binance would collapse and close down. For now, he notes, the price of BTC is solidly moving sideways.