Standard Chartered Bank, a major international bank, has issued a warning that Bitcoin’s price could plummet further, potentially reaching $50,000.
Factors Contributing to the Decline
- Macroeconomic factors: Rising inflation and the Federal Reserve’s decision to keep interest rates unchanged are putting pressure on Bitcoin.
- Crypto-specific factors: Reduced liquidity in the US and outflows from Bitcoin ETFs are also weighing on the price.
Current Market Situation
Despite the warning, Bitcoin’s price has rebounded slightly, rising over $1,000 in a single day. However, analysts believe that further price corrections are likely.
Analysts’ Predictions
- Ali Martinez and Michael van de Poppe predict that Bitcoin will reach its bottom during this bearish period.
- Once the market stabilizes, Bitcoin may be poised for a bullish rebound.
Implications for Investors
Investors should be aware of the potential for further price declines in Bitcoin. They should consider their risk tolerance and investment strategy before making any decisions.
