Standard Chartered Bank said that as the price of Bitcoin fell below the $60,000 mark and is currently hovering around $57,000, it could fall further to around $50,000.
Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered, said on Wednesday that "the fall below $60,000 has now reopened the path to the $50,000-$52,000 range. The drivers appear to be a combination of crypto-specific and broader macro factors."
Kendrick said that concerns about cryptocurrencies include five consecutive days of outflows from U.S. Bitcoin spot ETFs and the poor market response to the launch of Bitcoin and Ethereum spot ETFs in Hong Kong.
Kendrick said that as U.S. Bitcoin spot ETFs continue to experience outflows, the average ETF purchase price is currently below $58,000, and there is a risk of liquidation. "More than half of the spot ETF positions are in a loss, so the risk that some of these positions may be liquidated must also be considered." (The Block)