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Standard Chartered predicts that bitcoin could drop to $5,000 in 2023 as part of their research on potential market surprises in the coming year.
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Cryptocurrency prices fell after the Federal Reserve meeting in June, with bitcoin dropping below $25,000 for the first time since March.
Thursday, bitcoin It was about 4% lower at $24,866.92, as measured by Coin, while ether It fell more than 5% to $1,632.47.
Altcoins also fell. Solana token down 4%, ribbed 8% fell and Cardano lost 6%.
And heavier selling pressure pregnancy (USDT), which lost its peg to the US dollar on most exchanges Thursday, fell to 99 cents in its biggest decline since November.
The slide began late Wednesday, after the Federal Reserve wrapped up its June meeting and decided to leave interest rates unchanged for now, but said two more were on the horizon later this year. Stocks were pressured as the news spread, but cryptocurrency prices held firm even after the close.
“This has less to do with the FOMC, and more to do with weak liquidity and weak sentiment,” said Michael Savai, managing partner at Dexterity Capital. “Given the minuscule trading volume at the moment, a large (but not huge) sell order is enough to trigger liquidations.”
He added, “Traders are more inclined to keep their money off the table in the midst of a regulatory backlash, especially when it comes to altcoins, so there won’t be a lot of new capital flowing in to support prices so easily.”
Bitcoin (BTC) has been flat this week before falling after the stock market closed on Wednesday.
Price action was tepid this week while sentiment was negative after the Securities and Exchange Commission put an even bigger chill on the industry when it sued Coinbase and Binance and called them into question the regulatory status of several popular altcoins they deemed “crypto asset securities.” This was just the latest development in an ongoing campaign by regulators that has impacted the industry since the start of the year.
“More confusion about the legitimacy of popular altcoins is keeping capital on the sidelines, and it will take a long period of good or no news for traders to get excited about a recovery,” Safai said. “Bitcoin price will remain relatively constrained in the $25,000-$27,000 range until the next set of regulatory headlines tell us whether we are heading towards a resolution or even more opacity.”
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