The year 2022 has been a bad one for almost all cryptocurrencies, especially for Bitcoin, the largest cryptocurrency in the world by market cap, which dropped more than 75% from its all-time high value of around $69,000. And today, on the 5th of December, a new report from analysts at Standard Chartered revealed that Bitcoin could still drop further next year, around $5,000.
According to the report by Standard Chartered, a multinational banking group, Bitcoin could plummet as low as $5,000 in one scenario because the bursting of the crypto bubble has ramifications throughout the year 2023. In the report, Eric Robertsen, the bank’s head of global research, wrote that yields plunge along with technology claims, and while the Bitcoin sell-off decelerates, the damage has been done.
This prediction from the bank was made as part of its annual list of surprises that the bank’s analysts believe the markets may be ignoring or under-pricing. According to the report, the other possible difficulties for the next year include a collapse in food prices, a fall in oil prices, and the impeachment of US President Joe Biden.
Standard Chartered’s this annual list is its eighth edition and is not intended to predict high-likelihood events. But in the list is considering situations with a non-zero chance of happening that are presently not part of the market consensus. The report claimed that if more crypto firms and exchanges find themselves running short of cash, investor confidence in crypto assets could collapse, which as a result, send people back to the classic haven of gold.
As part of this scenario, the value of gold could benefit from a drop in crypto confidence and rise by 30%. The report also predicted the possibility of a broader downturn in tech stocks. This year, the values of companies on the Nasdaq 100 have declined by around 25%, but analysts claimed that in the next year, there would be an even bigger decline in this value. The analysts wrote that such a decline could be related to the woes in the crypto industry.