Bitcoin Hasn't Hit the Bottom Yet, Says Standard Chartered

If you think the recent dips in the price of Bitcoin is bad, leading financial firm Standard Chartered could further darken your mood, concluding that the biggest cryptocurrency by market cap could fall as far as $50,000.

In a Wednesday note, Geoffrey Kendrick—digital assets researcher at the British company and lead author of the report—said that “the broader macro backdrop has deteriorated for assets like crypto that thrive on liquidity.”

“The driver seems to be a combination of crypto specific and broader macro,” he added, noting that Bitcoin’s break below $60,000 has now reopened a route to the $50,000-$52,000 range.

Just last month, Standard Chartered predicted that Bitcoin could hit $150,000 per coin by the end of the year.

Bitcoin had been on a wild run following the January approval of 11 Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission. At the start of the year, it was trading for a little over $44,000. 

Capital flooded the market as investors with typically no exposure to cryptocurrencies were suddenly able to buy shares that track the price of the asset via brokerage accounts. 

Record amounts of money hit the products in the months following their launch, and in March, the cryptocurrency reached a new all-time high of $73,737.

But the hype has cooled, and the Federal Reserve has meanwhile signaled it will keep interest rates higher for longer—scaring investors away from “risk-on” assets like Bitcoin.

As a result, the funds have experienced significant outflows. 

Despite touching a new record in March, the price of Bitcoin today stands at $56,900, after dropping 13% in seven days. Since April, it has traded well below its 2021 record of $69,044.

Standard Chartered is still bullish. Kendrick added in a subsequent note that he was sticking with his prediction of $150,000 per coin by the end of 2024.

“The next leg higher may take some time and require us to be closer to the U.S. election,” he said—noting that a Trump presidency would be more “crypto-friendly” than a Biden one.

Editor's note: this article has been updated to include additional comment from Standard Chartered analyst Geoffrey Kendrick.