Bitcoin Could Drop Further to as Low as $50K, Standard Chartered Says
The cryptocurrency is now trading below the average spot ETF purchase price of about $58K, and this could trigger liquidations, the report said.
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The cryptocurrency is now trading below the average spot ETF purchase price of about $58K, and this could trigger liquidations, the report said.
The bank reiterated its year-end bitcoin and ether targets of $150,000 and $8,000, respectively.
Stock appears undervalued given the wide gap between the company’s valuation and its growth prospects, the report said.
Investors are pouring money into spot ETFs while avoiding miners due to risks related to Bitcoin’s halving event.
The bitcoin production cost has historically acted as a lower boundary to the cryptocurrency’s price, the report said.
The amount of ether held on exchanges is at an all-time low of 11%, a sign that more of the cryptocurrency is being locked up for DeFi, the report said.
Increased retail activity comes ahead of the three main catalysts in the coming months: the bitcoin halving, the Dencun upgrade of the Ethereum blockchain and the potential approval of spot ether ETFs, the report said.
Periodic observations and market musings from Todd Groth, Head of Research, CoinDesk Indices.
Deutsche Bank’s survey of retail investors see bitcoin (BTC) price dropping below $20K by year-end (Meg Boulden/Unsplash)
The broker says it prefers outperform rated mining stocks Riot Platforms (RIOT) and CleanSpark (CLSK).