Unlike Draper’s optimistic prediction, Standard Chartered spoke in December last year that bitcoin might sink. Markets said that it is too under-priced since it might sink as low as $5000. It means that it represents around a 70% plunge from the current price. Standard Chartered’s worse scenario for 2023 reflected the yield plunge following tech shares. Eric Robertsen said that while bitcoin sell-off decelerates, the damage has been present. He is the bank’s global head of research. He continued that more crypto firms plus exchanges encounter insufficient liquidity. Thus, it could result in bankruptcies and less investor confidence in the digital assets. Plus, Robertsen argued that the scenario has a non-zero probability of occurring the following year. And might fall materially out of the market consensus or the baseline views.
The same nightmare forecast also goes to Mark Mobius saying that it would drop to $20.000. Mark Mobius is a veteran investor who succeeded in 2022 for the price call. In the mid of 2022 he predicted that bitcoin might drop to 20.000 when it was trading above $28.000. That is why Mobius told the media that he will stick to his $10.000 price call in 2023. His decision reflected the rising interest rates plus the tightening monetary policy from the U.S. Federal Reserve. Furthermore, he argued that higher interest rates, the attraction for keeping and buying Bitcoin or other cryptocurrencies would be less.
Previous prediction from Carol Alexander, a professor of finance at Sussex University hit the truth that bitcoin would slip to $10.000. As the prediction was not that far, in 2023, she believed that cryptocurrency might gain. However, she added that the reasons could be beyond expectations.
