Standard Chartered Says Bitcoin Could Drop to $5,000 Next Year

Standard Chartered Bank’s words are reasonable: first, Bitcoin will plummet again in 2023; second, more and more cryptocurrency companies and exchanges are beginning to realize their lack of liquidity, which will lead to further bankruptcy and investors’ interest in digital assets. Confidence collapses; third, as cryptocurrencies fall further, more crypto companies and investors will choose to exit.

One sentence mentioned in this article can be focused on, which is what the 98-year-old world investment guru Munger said: This country does not need a currency that is beneficial to the “kidnapper”.

Possibly an unreliable forecast. That is, Standard Chartered Bank predicts that there is a possibility of Bitcoin plummeting to $5,000 next year. It can be said that Bitcoin is one of the few investment products in the world that cannot be valued. No one knows how much it is worth and has come up with the basis for valuation. Therefore, the forecast of Standard Chartered Bank is suspected of nonsense.

Munger’s other pertinent assessment is worth bearing in mind. Recently, Munger emphasized: “(In the currency circle) you can see a lot of delusions, one part is fraud, the other part is blind thinking, these two are a very bad combination.”

Investors should take Munger’s words to heart. People say: If you don’t listen to the old man’s words, you will suffer in front of your eyes.

The bankruptcy of FTX, the second largest cryptocurrency trading platform in the circle, caused a series of negative impacts. Then the prices of cryptocurrencies such as Bitcoin and Ethereum plunged one after another. Among them, the price of Bitcoin fell by 70%, and the lowest price fell below 15,000 U.S. dollar, and it’s not over yet, with Standard Chartered predicting the possibility of bitcoin plunging to $5,000 next year.

Large fluctuations in the price of Bitcoin have not been uncommon over the past few years. Bitcoin climbed to nearly $20,000 in 2017 before falling 80 percent the following year.

Later, Tesla CEO Musk supported cryptocurrency, invested $1.5 billion in Bitcoin, and accepted consumers to use digital currency to buy Tesla. Such fueling made Bitcoin rise, rising by more than 50%. However, U.S. Treasury Secretary Yellen has long said that Bitcoin is a “highly speculative asset” and warned investors to be careful.

Bitcoin has been on a downtrend since hitting an all-time high of $69,000 in November 2021. The FTX thunderstorm caused huge losses to funds such as Sequoia Capital and Softbank, which in turn brought a huge crisis of trust to the entire encryption circle. When investors no longer believe in the future of cryptocurrencies, the myths and legends of cryptocurrencies will no longer be attractive, and the crypto circle will begin to be abandoned by increasingly suspicious players. And gold, which has been suppressed by Bitcoin, has also begun to come into the eyes of investors and is favored.