Multinational bank Standard Chartered shared its gold and BTC forecasts for 2023, during the recovery period of the FTX crash. The bank’s expectations were not very encouraging for crypto investors.
Standard Chartered updates Bitcoin and gold forecasts after FTX collapse
The bank’s head of global research, Eric Robertsen, addressed the potential downsides for Bitcoin in 2023 in a note to investors on Dec. Robertsen predicts that Bitcoin will fall as low as $5,000 in 2023. In the analysis, he evaluated a possible drop in Bitcoin’s value associated with an increase in physical gold.
Robertsen also mentions that interest rate increases in 2022 may be reversed in the new year. He says this will attract “more bankruptcies” and “negative sentiment” to the cryptocurrency market. The strategist’s $5,000 price prediction would mean a 70% drop from the current market cap for Bitcoin. On the other hand, gold forecasts showed an increase of up to 30%. According to Robertsen’s predictions, the altcoin price could reach $2,250 per ounce.
cryptocoin.com As you follow, the closing months of 2022 were quite turbulent for the cryptocurrency market. The collapse of Sam Bankman-Fried’s companies FTX and Alameda Research caused shock waves in the bear market. Also, collateral damage was caused by the bankruptcy of affiliated companies and altcoin projects. The bankruptcy announcement of crypto lending platform BlockFi on November 28 was an indication that its high-profile companies were under fire.
Meanwhile, some crypto advocates are putting forward contrasting expectations for the 2023 outlook. Blockchain investor Tim Draper, for example, has suggested that Bitcoin will reach $250,000 next year. Thus, he emphasized his belief that the FTX bankruptcy will lead to greater decentralization of users, BTC adoption and increased self-surveillance.
Tim Draper isn’t the only one expecting a Bitcoin rally in the new year
In late November, macro market analyst Henrik Zeberg highlighted the rally that broke the $100,000 mark. In a tweet dated November 24, Zeberg stated that Bitcoin still behaves like any other risky asset. However, he suggested that it is not particularly “like gold”. For the macro analyst, one last rally in the market will be enough to push the BTC price above $100,000.
Similar to Zeberg, hedge fund manager Mark Yusko announced the potential start of Bitcoin’s next big bull run in the second quarter of 2023, as the ecosystem begins accumulating BTC in anticipation of the next halving. According to Yusko, the prospect of the next Bitcoin halving will ignite a crypto rally in 2023. Bitcoin’s halving mechanism, which halves block rewards every four years, has historically been bullish. The date for the next halving is predicted to occur in early 2024.
