‘Surprise’ $100 Billion 2023 Bitcoin Price Prediction Sends Shockwaves Through Crypto Market
Bitcoin
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The price of bitcoin has found a floor of around $17,000 per bitcoin after collapsing from nearly $70,000 late last year, prompting fears that the bitcoin and crypto industry may be “on the road to oblivion.”
Now, after BlackRock’s chief executive revealed “the next generation of markets”, analysts at banking giant Standard Chartered have warned that the bitcoin price could fall as low as $5,000 by 2023 – a further 70% decline that would reduce the market value of bitcoin to around 100 dollars. billions and cause crypto chaos.
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The Bitcoin price has so far failed to recover from a devastating price crash that wiped out more … [+]
“The tremors are plunging along with tech stocks, and while bitcoin sales are slowing, the damage is done,” Eric Robertsen, global head of research at Standard Chartered, wrote in a note first seen by CNBC entitled “The financial market surprises of 2023.”
Robertsen warned that further declines in tech company share prices would cause the bitcoin price crash to accelerate, leading to more crypto company bankruptcies.
Over the past month, the fallout from the spring collapse of the terraUSD stablecoin and its backing coin luna finally hit the crypto industry, taking down the FTX exchange that appears to have cheated investors and defrauded users and plunged many smaller crypto companies into crisis.
“More and more crypto firms and exchanges have insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets,” Robertsen wrote, adding that this is not necessarily the most likely scenario, but a possibility that is currently being downplayed of market consensus.
The “surprise scenarios” “have a non-zero probability of happening in the coming year.”
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Bitcoin price has crashed by around 70% in the last year and many have issued bearish 2023 … [+]
Bitcoin’s further price capping could coincide with a potential 30% rise in gold prices, according to Robertsen, as “cryptocurrencies fall further and more crypto firms succumb to liquidity squeezes and investor withdrawals,” restoring gold as the ultimate safe haven from market volatility.
“The boom in gold in 2023 [also] comes as stocks resume their bear market and the correlation between stock and bond prices shifts back to negative,” Robertsen added.
A rise in the gold price has also been predicted by Saxo analysts in their annual “outrageous predictions”, which estimate that the gold price could cut “through the double top near $2,075 as if it wasn’t there and fall to at least $3,000” in 2023.
“Any belief in a return to the disinflationary pre-pandemic dynamic is impossible because we have entered a global war economy, with all major powers around the world now trying to strengthen their national security on all fronts, whether in an actual military sense. , or because of deep supply chain, energy and even financial insecurities that have been exposed by the pandemic and Russia’s invasion of Ukraine,” Saxo’s chief investment officer Steen Jakobsen said by email.
