The expert of Standard Chartered assumed the fall of bitcoin up to $5 thousand.
The analyst's scenario assumes that the price of the first cryptocurrency will fall by 70% in 2023 because of the switch of investors' interest in gold
A further bitcoin decline by about 70% to $5,000 in 2023 is one of the "unexpected" scenarios that markets underestimate, said Eric Robertsen, head of global research at Standard Chartered, Bloomberg reports. He said demand could shift from bitcoin, which is perceived by the market as a digital version of gold, to a real asset, leading to a 30% increase in the price of the precious metal.
This scenario assumes an end to rising interest rates as economies get more difficult, as well as new bankruptcies in the crypto industry and a drop in investor confidence in digital assets, the expert said. At the same time, he stressed that he does not make predictions, but rather offers scenarios that go significantly beyond the current market consensus.
According to Robertsen, the unexpected scenario of rising cost of gold because of the retreat of cryptocurrencies could lead to the fact that the price of the precious metal will reach $ 2.25 thousand per ounce. On December 5, the price of gold is at $1.78 thousand, the high of this year was fixed on March 31 at $1.94 thousand.
The crypto market may have even more problems ahead, the publication notes.
He pointed to lingering uncertainty about Digital Currency Group, the parent company of cryptocurrency brokerage Genesis. Genesis' creditors are looking for options to try to keep the brokerage company from going bankrupt.