Standard Chartered is Skeptical about Bitcoin

Standard Chartered published a list of potential shocks for 2023 on December 4, 2022. The list suggests that the impeachment of President Joe Biden and a decline in oil prices are likely outcomes. Unsurprisingly, cryptocurrency was also included in the list.

Standard Chartered now thinks that the Bitcoin downturn is far from finished. According to Head of Research Eric Robertson, the present market is "under-pricing" Bitcoin, which might fall below $5000 next year. If this scenario came to pass, the price would plummet by 70% from where it is right now (December 5, 2022), which is $17,000. The desire for Bitcoin as digital gold, he said, may change to genuine gold. He exclaimed:

"The decline in the price of Bitcoin will be accompanied by an increase in the price of gold, with the precious metal perhaps rising 30% to $2,250 per ounce. This will occur if cryptocurrency prices drop more and more crypto firms experience liquidity issues and investor exodus.

Robertson went on to say:

When the market goes back into a bear market and the correlation between bond and equities prices turns negative, 2023 will see a gold comeback.

He underlined, though, that he was not making any predictions. It is just an examination of circumstances that diverge fundamentally from the dominant market perspective.

However, Ethereum's creator Vitalik Buterin advises traders and investors to concentrate on the technology. Although the cryptocurrency market is out of control, there are still unexplored areas in blockchain technology. He believes that market players and investors should seize this chance to do further research. The time is right to comprehend the distributed ledger technology and the underlying blockchain ecosystem.