Geoffrey Kendrick, head of Forex and Digital Assets Research at Standard Chartered Bank, would further raise concerns about the direction of Bitcoin as the recent drop has been below $60,000 and most likely is going to signal a further decline to around $50,000-$52,000.
He pointed out that crypto was under mounting pressure as new Bitcoin and Ether ETFs failed to attract much demand in Hong Kong and as the US spot ETF continued to outflow funds continuously for three days.
Kendrick noted that the average purchase price of the ETFs has come down to under $58,000, raising the risk of liquidation, considering over half of these ETF positions are currently in the loss-making zone.
Despite the current bearish trend, Standard Chartered remains optimistic about Bitcoin’s long-term value. In March, the bank revised its end-of-2024 Bitcoin price prediction from $100,000 to $150,000, citing potential strong inflows into spot Bitcoin ETFs and interest from forex reserve managers.
Kendrick even suggested that the price might soar to $250,000 by 2025. Kendrick suggests that the rally’s timing depends on ongoing market positivity and potential geopolitical factors, such as the upcoming U.S. presidential election. He anticipates a potential surge later in the year if market conditions remain favorable.
Also Read: Bitcoin’s 6% Drop to $59,500 Sparks “Buy the Dip” Sentiments
