Bitcoin price could fall to $50,000

Geoffrey Kendrick, head of foreign exchange and digital belongings analysis at Customary Chartered, informed The Block: “BTC’s correct break under $60,000 has now reopened a path to the $50,000-52,000 vary.”

As of writing, Bitcoin is buying and selling below $57,000 after a steep drawdown from current highs above $70,000. Kendrick cited each the Bitcoin market and broader macroeconomic components weighing on Bitcoin’s value.

He highlighted 5 straight days of outflows from U.S. spot Bitcoin ETFs and the gradual begin for brand new Hong Kong spot Bitcoin ETFs as the explanations for the current drawdown.

Past markets, Kendrick pointed to deteriorating liquidity measures within the U.S. which have put stress on threat belongings like Bitcoin.

Nonetheless, Customary Chartered and Kendrick keep a bullish long-term outlook. The financial institution not too long ago raised its 2024 year-end Bitcoin value goal to $150,000 and sees costs doubtlessly reaching $250,000 in 2025.

Kendrick acknowledged the financial institution’s forecast stays intact, anticipating the following rally to return after the 2024 U.S. elections.

Adverse sentiment stemming from the current arrests of Binance founder Changpeng Zhao (CZ) and early Bitcoin investor Roger Ver is also components within the drawdown.

Nonetheless, the pullback additionally comes after Bitcoin posted seven straight months of good points, signaling a possible want for consolidation.

Nonetheless, mainstream adoption continues accelerating, as seen within the huge early inflows into U.S. spot ETFs. And whereas Hong Kong ETF buying and selling started slowly, these funding autos ought to unlock vital institutional demand over time.