Bitcoin Risks Falling to $50,000 and Ethereum to $1,400: Standard Chartered

Standard Chartered has warned that weakening market sentiment and deteriorating macroeconomic conditions could push Bitcoin and Ethereum lower. 

Geoff Kendrick, the bank’s Global Head of Digital Asset Research, reignited concerns within the crypto community after outlining downside risks for Bitcoin and Ethereum.

Key Points

• Standard Chartered warns that weakening market sentiment and macroeconomic pressures could drive Bitcoin and Ethereum lower.
• Analysts project Bitcoin could decline to $50,000, while Ethereum may drop to $1,400, about 30% below current levels.
• The Crypto Fear & Greed Index recently plunged to an all-time low of 5, signaling extreme fear.
• ETF flows, which previously supported Bitcoin and Ethereum prices, have recently turned bearish. 

Bitcoin could fall to $50,000, while Ethereum risks a slide to $1,400

In a recent commentary shared by reporter Walter Bloomberg, Kendrick projected that Bitcoin could fall to $50,000, while Ethereum might decline to as low as $1,400. The projected targets imply sharp declines of 26% for Bitcoin from $67,724 and 29% for Ethereum from $1,986. 

He attributed the potential downturn to a softening U.S. economy, declining holdings in digital asset ETFs, and delayed expectations for Federal Reserve rate cuts until at least June, all of which continue to weigh on crypto markets. 

Markets Still Under Bearish Pressure 

Notably, Kendrick’s warning follows one of the market’s sharpest recent pullbacks. As technology stocks and precious metals tumbled last week, Bitcoin dropped to a 16-month low of $60,008, while Ethereum slid to a nine-month low of $1,751. 

Although both assets have since rebounded to trade around $67,724 and $1,986, respectively, Kendrick maintains that they remain under bearish pressure as investor appetite for risk assets continues to weaken. 

Moreover, sentiment across the market has been bearish since last week. Earlier today, the Fear & Greed Index slumped to 5, marking its lowest level on record, and signaling extreme fear.  

ETF Outflows Persist 

Furthermore, key supporting metrics have also weakened in recent times. In particular, flows into Bitcoin and Ethereum ETFs, which fueled last year’s rally, have reversed sharply. Inflows have faded, and most sessions now end in net outflows. 

Yesterday, Bitcoin ETFs recorded $276.3 million in outflows, while Ethereum ETFs posted only $129.1 million in inflows, underscoring the fragile state of demand.  

Meanwhile, Kendrick’s latest warning has stunned investors, especially after his bullish forecasts just last month. At the time, he projected Bitcoin at $150,000 and Ethereum at $7,500 this year. 

Consequently, the abrupt shift in outlook has intensified market scrutiny, with investors now closely tracking the next moves of the two largest cryptocurrencies, as their direction could ripple across the broader market.