SCB’s Prediction Of Bitcoin, Suggests Value Drop Below $5K

Liquidity Crisis Ahead In Crypto Industry

FTX, which had been the world’s largest and most popular crypto trading platform, has collapsed recently. It had been a victim of a liquidity crisis which turned into a massive shortfall and ultimately led to the firm filing for bankruptcy.

However, bankruptcy wasn’t the end of the matter and in fact, FTX has to now deal with the post-collapse crisis. Amongst this post-collapse crisis, the major crisis relates to FTX’s creditors from whom FTX had borrowed billions.

The firm and its founder, Sam Bankman-Fried, who commanded the firm as CEO, have been accused of mismanaging the funds.

FTX’s fall also brought a massive crisis into the crypto industry, particularly the industry’s economy.

Currently, various crypto platforms are also facing severe liquidity crises and this fact is duly noted by Standard Chartered Bank’s analysts.

According to global lending and banking services institute’s analysts, a massive liquidity crisis is lurking ahead.

SCB’s Market Analysis Report

A report, under the heading “Financial Market Surprises of 2023”, has been published by SCB.

Bank’s senior analyst, Eric Robertsen, notes in the report that Bitcoin’s value could possibly decline below $5,000 in 2023.

$5,000 Bitcoin’s 2023 Value?

According to Robertsen’s claim, Bitcoin would lose value roughly by 70% which is currently trading in the near $17,000 range i.e. $16,829.

He opined that “no matter how much Bitcoin traders have cooled down sell-off as too much damage has already been caused.”

Robertsen claims that there are a lot of firms in the crypto market in which a liquidity crisis has become unavoidable. Also, there are firms that are edging toward bankruptcy and several of them are on the brink of collapse.

He further claims that investors’ faith and confidence in cryptocurrencies have both been lost and seem impossible to be restored.

Gold Resurgence

While predicting further crypto economy crisis and liquidity shortage disaster, Robertsen noted that Gold will re-boost investors’ confidence.

According to him, a huge value increase is expected in Gold in the near future. He predicted that the Gold market could rally as high as 30% i.e. per ounce of gold would be worth $2,250.

He argued that in 2023 equity markets would remain bearish while the connection between bond prices and equity would be negative. Hence, according to Robertsen’s analysis, it would be gold prices resurging next year.

Endorsement of SCB’s Bitcoin Prediction

Acclaimed economist and veteran trader, Peter Schiff, also shared his viewpoint on SCB’s analysts’ future price prediction of Bitcoin.

He endorsed that Bitcoin’s price has a long way to go down further. He posted a tweet in which he counter-claimed that Bitcoin is likely to lose more than 70% of its value in 2023.

As per Schiff’s analysis, the $5,000 range for a single unit of Bitcoin in 2023 is still an overpriced prediction. He suggested that $5,000 is no way near the bottom.

Earlier, Mark Mobius, the founder of AUM firm, Mobius Capital Partners, had also commented on Bitcoin’s future price. He predicted that in 2023 Bitcoin’s value would be less than $10,000.

Mobius argued that Bitcoin’s value decline at the $10K level would stem from the rising rates of interest and strict oversight.

Little Hope

Yet, some analysts are still hopeful about Bitcoin’s future and one of them is Tim Draper.

Draper said with certainty that in mid-2023, Bitcoin’s value would go as high as $250,000.

Other people such as Michael J. Saylor are also hopeful about the positive and strong performance of Bitcoin in the year 2023.

According to Saylor, Bitcoin has the ability to surge to a high of $500,000 in the year 2023. However, many people think that the prediction coming from Saylor is based on his strong passion for Bitcoin.

Therefore, it is being taken lightly by investors and the entire cryptocurrency. Still, it is an optimistic approach from Michael J. Saylor and even if half of what he claims comes to life, it will be a $250k jump for BTC.