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Standard Chartered thinks about what could go wrong with Bitcoin in 2023 when FTX will no longer be available.
Standard Chartered predicts a “surprise” Bitcoin drop following the FTX collapse.
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The value of the Bitcoin BTC ticker could fall as low as $5,000 in 2023, according to Standard Chartered’s global research head and chief strategist.
According to Bloomberg, a note to investors published on December 4 by the multinational bank’s chief strategist, Eric Robertsen, weighed the possibility of a drop in Bitcoin’s value correlated with a surge in physical gold.
Robertsen listed possible events that could happen in 2023, such as interest rates going up in 2022, more companies in the cryptocurrency sector going bankrupt, and negative feelings about the market.
This could mean more downside for Bitcoin next year, with a 70% drop from its current market value, while gold could rise by up to 30% to $2,250 per ounce.
The final months of 2022 were turbulent for the cryptocurrency ecosystem as a whole. In an already difficult year, the collapse of Sam Bankman-FTX Fried’s cryptocurrency exchange and hedge fund Alameda Research sent shockwaves through the industry.
FTX’s bankruptcy proceedings have already caused collateral damage, with cryptocurrency lender BlockFi following in its footsteps due to FTX and Alameda’s “significant exposure’ and obligations to the former.
Meanwhile, cryptocurrency supporters have offered contrasting forecasts for the space in 2023. Tim Draper, a well-known venture capitalist and blockchain investor, said that Bitcoin would reach $250,000 by next year. He said this because he thought that the FTX scandal would lead to more decentralization, more people using BTC, and more users keeping their own coins.
Mark Yusko, who runs a hedge fund, also said that Bitcoin’s next big bull run could start in the second quarter of 2023 when the ecosystem starts to collect BTC in preparation for the next reward halving.