The breakout of the Bitcoin price below $60,000 again opened the way to the range of $50,000–52,000. Standard Chartered warned about this, writes The Block.
They cited “a combination of cryptocurrency-specific and broader macroeconomic factors” as a factor in the “new suffering.”
By the first, the bank understands a five-day outflow of funds from American spot Bitcoin ETFs and a weak reaction to the launch of their analogues in Hong Kong.
After digital gold prices dropped below $58,000, the risk of liquidations arose, since more than half of the positions in exchange-traded funds suffered a “paper” loss, experts added.
Regarding macroeconomics, experts mentioned the deterioration in liquidity indicators since mid-April, noting their impact on the cryptocurrency market.
“With strong US inflation data and a lower likelihood of a Fed rate cut, liquidity matters at the moment. Enter Bitcoin in the $50,000-$52,000 range or if the US CPI [May 15] is friendly,” analysts recommended.
Standard Chartered maintained its digital gold targets for 2024-2025 at $150,000 and $250,000. The driver will be inflows into spot BTC-ETFs and purchases by sovereign currency funds.
“Right now it may take a little time. As we get closer to Trump's election victory, we will be able to go into a strong rally from September to the end of the year,” the experts explained.
Let us recall that in April Standard Chartered doubted the approval of spot ETH-ETFs in May.
Earlier, Bernstein called the slowdown in inflows into Bitcoin-based exchange-traded funds temporary.
