#bitcoin Faces Potential Further Decline to $50,000, Says Standard Chartered Bank

Standard Chartered Bank's head of forex and digital assets research, Geoffrey Kendrick, has issued a cautionary note regarding Bitcoin's recent dip below the $60,000 mark, suggesting it could signal more significant losses ahead. Kendrick expressed concern over Bitcoin's price trajectory, suggesting that breaching the $60,000 support level might pave the way for a potential decline to the $50,000 to $52,000 range.

According to Kendrick, several factors contribute to the downward pressure on Bitcoin. Notably, there have been five consecutive days of outflows from U.S. spot Bitcoin exchange-traded funds (#ETFs ). Additionally, the lackluster response to the launch of spot Bitcoin and Ether ETFs in #hongkong has added to the overall negative sentiment.

The combination of outflows from U.S. spot Bitcoin ETFs and the average purchase price currently below $58,000 raises the risk of liquidation for some ETF positions, Kendrick warned. He highlighted that more than half of the spot ETF positions are currently underwater, further amplifying the potential for liquidation.

Kendrick also pointed to broader macroeconomic factors impacting Bitcoin's price dynamics, particularly the tightening of liquidity measures in the United States since mid-April. This tightening of liquidity exerts downward pressure on risk-on assets like Bitcoin.

Despite these concerns, Standard Chartered Bank has maintained its #Bitcoinprice prediction targets for 2024 and 2025 at $150,000 and $250,000, respectively. Kendrick acknowledges that a price recovery may take time but anticipates a potential rally leading up to the U.S. presidential election.

Source - finance.yahoo.com