Eric Robertsen, Global head of research at Standard Chartered predicts that Bitcoin will fall to $5,000 next year as more cryptocurrency firms may face liquidity issues.
In Standard Chartered’s annual list of surprises, he states that 2023 could be a prosperous year for gold, envisioning the yellow metal rising to $2,250 an ounce.
Eric Robertsen argued that 2023 could bring more pain to the cryptocurrency market, particularly Bitcoin. He estimates the price could drop $5,000, or 70%, from its current valuation.
Eric Robertsen said future crises could collapse other cryptocurrency companies and platforms that find themselves “with insufficient liquidity”. They may face liquidity squeeze and mass withdrawals which can push them into bankruptcy protection. Other negative events like FTX crash could have a serious impact on investor confidence in the sector.
The primary digital currency has already lost much of its value in the ongoing bear market. It traded at around $47,000 in early 2022, while at the time of writing it is at around $17,000.
Also read: Standard Chartered Enters Mega City in The Sandbox
