Standard Chartered Predicts The Bitcoin Price Might Plunge To $50K On BTC ETF Outflows, Macro Outlook

Customary Chartered stated the Bitcoin worth may drop to the $50K-$52K vary as outflows from US spot Bitcoin exchange-traded funds (ETFs) proceed amid an unsure macro outlook.

Bitcoin dropped under $60,000 yesterday, and it was buying and selling at round $57,700 as of 04:49 a.m. EST.

Whereas talking to The Block, the pinnacle of digital belongings and foreign exchange analysis at Customary Chartered Financial institution, Geoffrey Kendrick, stated this drop coincides with growing outflows from Bitcoin ETFs.

On Might 1, complete web flows from spot Bitcoin ETFs reached $564 million after 5 consecutive days of outflows.

🚨 #Bitcoin ETFs Replace (Might 1)

Constancy Sells 3,300 BTC
GBTC Sells 2,900 BTC
ARK Sells 1,700 BTC
Blackrock Sells 600 BTC

Whole Internet Flows from all ETFs -9,750 #Bitcoin ($564M) pic.twitter.com/sRl6Jfz4JC

— Thomas | heyapollo.com (@thomas_fahrer) May 2, 2024

Kendrick famous that Bitcoin was buying and selling under the typical worth of $58,000 at which traders bought the ETFs. Due to this fact, over half of all spot ETF positions have been below the water, with some going through the chance of liquidation.

He additionally provides that the lately launched Hong Kong spot ETFs have been doing little to sway market sentiment. Whereas the crypto group has decried the low turnover volumes, Customary Chartered says the online asset place for these new ETFs was commendable.

Bitcoin Worth Additionally Impacted By Macro Outlook

The funding financial institution additionally stated that Bitcoin’s efficiency depends on broader macroeconomic developments.

Inflation information within the US stays robust, and the Federal Reserve stated on Might 1 that rates of interest will stay unchanged at 5.25%-5.50%.

The tighter coverage than had been anticipate by markets has affected danger belongings like crypto.

“Liquidity issues when it issues, however with a backdrop of robust U.S. inflation information and fewer probability of Fed fee cuts, it issues for the time being,” Kendrick stated. “Re-enter BTC within the $50-52k vary or if US CPI on the fifteenth is pleasant.”

Simply final month, Customary Chartered doubled down in its Bitcoin prediction, saying it may hit $150,000 by the top of the yr.

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