According to research group Standard Chartered, 2023 will be a nightmare for Bitcoin. In a new note to its investors, the investment bank outlines a bleak outlook for Bitcoin, with the price set to fall to $5,000 next year.
Switch to physical gold
Not too far into the document, Standard Chartered explains what this forecast is based on. The banking giant expects a real flight to physical gold. Gold has been overlooked in investment portfolios for years. After the run on the US dollar in 2022, Standard Chartered expects a flight to hard assets and especially physical gold for 2023.
Standard Chartered chief strategist Eric Robertsen sees few hopeful developments for Bitcoin in 2023. According to the well-known analyst, there is a chance that other large companies in the sector will go bankrupt and that the market climate will cool down further.
From its current price of $17,300, Robertson expects Bitcoin to fall by 70%. For physical gold, the analyst predicts a price of $2,250, up 30% from the current price. So according to Standard Chartered, the bitcoin industry should brace for another tough year.
No more forced sales
Standard Chartered is now convinced that the forced sale of Bitcoin is over. It refers to sales that people are forced to make because otherwise they will be pushed out of their position. “But at current prices, investors are not adequately compensated for the risks that remain in the market,” the investment bank writes in the statement.
With this, Standard Chartered points to possible new problems with centralized players that may surprise. You might think of parts of Binance’s caliber suddenly becoming illiquid. This would potentially lead to even greater drama than the FTX crash.
Of course, there is uncertainty in the crypto world right now. In any case, we have to agree with Standard Chartered. However, a $5,000 Bitcoin price currently seems highly unlikely. After all, Bitcoin still needs to experience a significant decline for that to happen.
there is also optimism
Incidentally, the news is not all negative when it comes to bitcoin at the moment. There are many influential figures who still see a bright future for Bitcoin. What about billionaire venture capitalist Tim Draper, who predicts a Bitcoin price of $250,000 next year? Draper believes the FTX crash will ultimately only have positive consequences for the industry.
The FTX implosion is showing people what Bitcoin is really all about: decentralization. He hopes that more people will choose their own wallet and leave the main platforms as they are. In any case, that would make the industry a lot more resilient.
Draper is not alone in having positive feelings about Bitcoin’s future. Analyst Henrik Zeberg also predicted a Bitcoin price of $100,000 at the end of November. In addition, hedge fund manager Mark Yusko sees 2023 as a possible start of another Bitcoin bull run. Therefore, there are still many people who believe in the absolute scarcity of Satoshi Nakamoto’s creation.
Source: Btc Direct
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Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
