The collapse of FTX will continue to affect cryptocurrency market sentiment, leading to a drop in the price of bitcoin to $5,000 in 2023. This conclusion was reached in Standard Chartered, writes Bloomberg.
The multinational bank’s chief strategist, Eric Robertsen, has allowed interest to switch from a digital version of gold to its physical counterpart.
The conclusion about the fall of bitcoin follows from his forecast for the growth of the precious metal by 30%, to $ 2250 per troy ounce.
The described scenario is possible due to the suspension in 2023 of the world’s leading central banks of raising interest rates after their growth in recent months. An additional factor will be the expected continuation of a series of bankruptcies of large participants in the crypto industry with a loss of confidence in digital assets.
Robertsen emphasized that the proposed version of the development of events is not a forecast, but only suggests a possible deviation from the current market consensus.
“Gold will benefit from problems in the crypto industry in the future”agreed Nicholas Frappell, global head of institutional markets at ABC Refinery.
“Our base case assumes that most of the forced sales are completed, but investors may not be compensated for market risk,” Sean Farrell, Head of Digital Asset Strategy at Fundstrat, said in a statement.
The expert referred to the ongoing uncertainty surrounding the Digital Currency Group and its subsidiary Genesis OTC platform.
According to Bloomberg’s MLIV Pulse poll, about 94% of respondents believe the FTX bankruptcy will be followed by further turmoil as years of easy lending give way to a tougher business and market environment.
Recall that in November, BlockFi and eight subsidiaries filed for bankruptcy.
Earlier it became known that the volume of debt of the cryptocurrency broker Genesis Global Capital reached $1.8 billion and with a high degree of probability will continue to grow, according to the media.
Prior to this, Bloomberg reported on the desire of Genesis creditors to prevent the bankruptcy of the organization.
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The collapse of FTX will continue to affect cryptocurrency market sentiment, leading to a drop in the price of bitcoin to $5,000 in 2023. This conclusion was reached in Standard Chartered, writes Bloomberg.
The multinational bank’s chief strategist, Eric Robertsen, has allowed interest to switch from a digital version of gold to its physical counterpart.
The conclusion about the fall of bitcoin follows from his forecast for the growth of the precious metal by 30%, to $ 2250 per troy ounce.
The described scenario is possible due to the suspension in 2023 of the world’s leading central banks of raising interest rates after their growth in recent months. An additional factor will be the expected continuation of a series of bankruptcies of large participants in the crypto industry with a loss of confidence in digital assets.
Robertsen emphasized that the proposed version of the development of events is not a forecast, but only suggests a possible deviation from the current market consensus.
“Gold will benefit from problems in the crypto industry in the future”agreed Nicholas Frappell, global head of institutional markets at ABC Refinery.
“Our base case assumes that most of the forced sales are completed, but investors may not be compensated for market risk,” Sean Farrell, Head of Digital Asset Strategy at Fundstrat, said in a statement.
The expert referred to the ongoing uncertainty surrounding the Digital Currency Group and its subsidiary Genesis OTC platform.
According to Bloomberg’s MLIV Pulse poll, about 94% of respondents believe the FTX bankruptcy will be followed by further turmoil as years of easy lending give way to a tougher business and market environment.
Recall that in November, BlockFi and eight subsidiaries filed for bankruptcy.
Earlier it became known that the volume of debt of the cryptocurrency broker Genesis Global Capital reached $1.8 billion and with a high degree of probability will continue to grow, according to the media.
Prior to this, Bloomberg reported on the desire of Genesis creditors to prevent the bankruptcy of the organization.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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