Bitcoin could also experience a creepy year in 2023. After a 12-month meltdown, the world‘s largest crypto could drop to $5,000 next year in a market surprise that investors are underestimating, according to Standard Chartered. This would mark a roughly 70% drop from the $17,000 price bitcoin currently trades at.
In a report titled “The financial-market surprises of 2023”, Standard Chartered has outlined a number of possible “undervalued by the markets” scenarios. The decline in the price of bitcoin would also coincide with a Gold rally that could potentially surge 30% to $2,250 an ounce.
According to Eric Robertsen, global head of research at Standard Chartered Bank, this possible scenario involves a reversal of interest rate hikes as economies struggle and more crypto failures materialize and a collapse in investor confidence in digital assets .
Robertsen points out that these are not forecasts, but scenarios that are materially outside the current market consensus.
Robertsen states that gold could reassert itself as a safe haven, with investors flocking to this asset for stability in times of market volatility. “Gold’s recovery in 2023 comes as equities resume their bear market and the correlation between stock and bond prices turns negative“, he added.
Bitcoin has a negative balance of around 60% this year. There is no shortage of those who are strongly bullish on bitcoin. The venture capitalist Tim Draper told CNBC that he thinks bitcoin could reach i $250,000 next year.