- Robertsen predicts gold will soar as much as 30% to $2,250 per ounce.
- This is a decline of roughly 70% from the current BTC price of about $17,000.
The memo, headlined “The financial-market surprises of 2023,” was released by Standard Chartered Bank on Sunday. Eric Robertsen, Standard Chartered’s global director of research, said that some of the possibilities outlined in the report are “under-priced by the markets.”
The price of bitcoin may fall below $5,000 in the next year, according to one of the hypothetical scenarios. This would represent a decline of roughly 70% from the current BTC price of about $17,000.
“Yields plunge along with technology shares, and while the bitcoin sell-off decelerates, the damage has been done. More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.”
The analyst from Standard Chartered elaborated:
The extreme possibilities “have a non-zero probability of occurring in the year ahead, and … fall materially outside of the market consensus or our own baseline views.”
Even though he expects cryptocurrencies to collapse further and more crypto businesses to “succumb to liquidity squeezes and investor withdrawals,” Robertsen predicts gold will soar as much as 30% to $2,250 per ounce and regain its status as a safe haven.
“The 2023 resurgence in gold comes as equities resume their bear market and the correlation between equity and bond prices shifts back to negative. Commenting on Standard Chartered Bank’s $5K bitcoin price outlook, gold bug and economist Peter Schiff reiterated his prediction that BTC has much further to fall.”
The crypto market has been shaken by the recent FTX crash with multiple firms revealing exposure.