Standard Chartered considers potential downside for Bitcoin in 2023

Multinational bank Standard Chartered considers potential downside for Bitcoin in 2023 as the cryptocurrency ecosystem weathers the collapse of FTX. As per a report by Bloomberg, the multinational bank’s chief strategist and head of global research, Eric Robertsen, predicted a potential drop in Bitcoin’s value correlated with a surge in physical Gold.

Robertson outlined prospective scenarios for 2023 that could see interest rate reversals from hikes this year, stressed on cryptocurrency sector bankruptcies and negative sentiment towards the market. This could include further snag for Bitcoin next year, with a 70% decline from its current market value while Gold could see an upside of up to 30% to the $2,250 mark per ounce, he said.

The closing months of 2022 have been tumultuous for the wider cryptocurrency ecosystem. The collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange and hedge fund Alameda Research further sent shockwaves through the industry.

The crypto sector has continued to be extremely volatile. For example, digital asset exchange Bybit plans to cut its workforce by 30%, the latest in a series of layoffs hitting the industry. There may be greater challenges ahead. Over 94% of respondents to Bloomberg’s MLIV Pulse survey believe further blowouts will follow FTX’s bankruptcy as years of easy lending give way to a tougher business and market environment.

However, not everyone agrees with the report and there has also been some contrasting views on the future of Bitcoin. Venture capitalist and blockchain investor Tim Draper predicted Bitcoin hitting $250,000 in 2023, highlighting his belief that the FTX fiasco would lead to greater decentralisation, adoption of BTC and increased self-custody by users.

In November, macro market analyst Henrik Zeberg also outlined a potential surge in the value of Bitcoin alongside other risk assets over the $100,000 barrier, in an interview with Cointelegraph.

Meanwhile, CoinGecko reports that Bitcoin’s price has increased on a daily and biweekly basis, suggesting that the market may be recovering from FTX’s fall. The virtual coin is up as much as 1.8% on Monday, trading at a three-week high of around $17,340. Investors at large were also optimistic as tokens like Ether, Solana, and Polkadot also gained.