The bear market is not over yet, buy the bottom and wait? Standard Chartered: Bitcoin may drop to $5,000 next year

Investors who firmly believe that “cryptocurrency is out of the bear market” may be disappointed next year, because according to Standard Chartered Bank, more troublesome situations may be yet to come, and the cryptocurrency market will still have room for a sharp decline.

Eric Robertsen, global head of research at Standard Chartered Bank, wrote in a report on Sunday that as the global economy enters recession and the FTX bankruptcy storm will drag down more cryptocurrency companies to collapse, it will seriously hit investors’ confidence in the cryptocurrency industry. Next year, it may further plummet by 70% to $5,000.

Such a drop is unimaginable, but Eric Robertsen pointed out that this may be one of the “surprise” scenarios where the market “underpriced” Bitcoin.

Eric Robertsen also pointed out that he is not making predictions on currency prices, but wants to emphasize that there is a gap between the current market consensus on “the plunge is over” and the actual situation.

However, Sean Farrell, director of digital asset strategy at Fundstrat, believes that although most of the forced selling has ended, investors may not be compensated for market risks that occur in the short term.

Eric Robertsen also expects that investors’ safe-haven demand will begin to shift from “digital gold” to “physical gold”, thereby stimulating a 30% rise in gold prices.

Nicholas Frappell, global head of institutional markets at ABC Refinery, a precious metals trading company in Sydney, pointed out that “gold will benefit from the quagmire of cryptocurrencies as people’s confidence in the cryptocurrency industry has been hit hard.”

Blocker reported last week that the legendary American fund manager “Mark Mobius”, known as the “Godfather of Emerging Markets”, also said that the cryptocurrency market is still likely to continue to fall. It fell back to $10,000.

Bitcoin is currently relatively stable, trading at $17,305 at press time, up 1.9% over the past 24 hours and 5.2% over the past seven days.