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It isn’t only SCB that is bearish about Bitcoin. Serial investor Mark Mobius stated that he believes Bitcoin would fall to $10,000 in 2023.
Standard Chartered Bank (SCB) has predicted that Bitcoin price could drop to $5000 in 2023 as part of a list of surprises that investors may be overlooking. Global head of research at SCB Eric Robertsen noted that the items on their surprise list have a non-zero probability meaning they have a slight chance of playing out.
Bitcoin is already more than 60% down from its peak in November 2021. After an initial rally in May/June, the cryptocurrency has been dragged down by high-profile collapses. The latest of them is the FTX collapse which has all but wiped out investor confidence in the market.
Should the Bitcoin price drop to $5000, that would mean a further 70% decline from its current price. Robertsen said:
“More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.”
Contrarily, Robertsen noted that Gold could rally by 30% to $2250 if Bitcoin drops to $5000.
Investors Differ on 2023 Bitcoin Price Direction
It isn’t only SCB that is bearish about Bitcoin. Serial investor Mark Mobius stated that he believes Bitcoin would fall to $10,000 in 2023. Mobius cited rising interest rates and stricter monetary policy from the US Federal Reserve as the reason for this.
Similarly, JPMorgan analysts believe Bitcoin has not found its bottom and could still drop to $13,0000 due to margin calls across the market.
According to David Kemmerer, CEO of CoinLedger, the ongoing crypto winter would last for a bit longer before retracement occurs. “That’s because of macroeconomic factors: 40-year highs in inflation, rising borrowing costs, and political instability after Russia invaded Ukraine,” he said.
Meanwhile, venture capitalist Tim Draper remains bullish about Bitcoin. Draper predicts that Bitcoin would rise as high as $250,000. Likewise, macroeconomist Henrik Zeberg also raised the possibility of Bitcoin surging beyond $100,000.
According to Hedge fund veteran Mark Yusko, Bitcoin would begin a major bull run by the second quarter, setting a target price of $250,000 for BTC in the long run. “In the future, Bitcoin wins because it is an asset that exists in the absence of a liability, which is what the definition of money is,” he concluded.