Standard Chartered lowered its long-term outlook for Bitcoin (BTC) for the second time in less than three months as the cryptocurrency market appears to have entered a new bearish cycle.<\/p>\n
With the leading cryptocurrency currently consolidating <\/a>below the key $70,000 level, the bank now warns that the asset could fall as low as $50,000 before staging a recovery.<\/p>\n In a note published Thursday, Geoff Kendrick, Standard Chartered\u2019s head of digital assets research, said the bank now expects Bitcoin to reach $100,000 by the end of 2026.\u00a0<\/p>\n The latest figure marks a significant reduction from its previous $150,000 projection for BTC. The revision follows an earlier downgrade in December, when the bank cut its target from an ambitious $300,000.<\/p>\n According <\/a>to Bloomberg\u2019s report on the matter, the bank\u2019s more cautious stance reflects a combination of weakening macroeconomic conditions and shifting investor behavior, especially over the past month\u2019s downtrend.<\/p>\n The leading cryptocurrency has declined more than 40% from its October peak toward current trading prices of around $67,160, while the US spot Bitcoin exchange\u2011traded funds (ETFs) sector has seen nearly $8 billion in net outflows.\u00a0<\/p>\n Kendrick noted that slowing US economic momentum and reduced expectations for Federal Reserve (Fed) rate cuts <\/a>have weighed heavily on digital assets. In particular, declining ETF holdings have removed what had been a critical source of demand during previous rallies.<\/p>\n The interest\u2011rate environment remains a central concern. Markets have pushed back expectations for Federal Reserve easing, with investors now anticipating that the first rate cut may come later in the year than previously thought.\u00a0<\/p>\n Kendrick also pointed to uncertainty surrounding future Federal Reserve leadership as an additional factor contributing to Bitcoin caution. The bank warned that deteriorating macro conditions<\/a> and the risk of further investor capitulation could continue to pressure prices in the near term.<\/p>\n Despite the more conservative Bitcoin forecasts, Standard Chartered emphasized that the current downturn appears more orderly than previous crypto market collapses<\/a>.\u00a0<\/p>\n Kendrick highlighted that on\u2011chain activity data continues to show improvement, suggesting that underlying network usage remains healthy.\u00a0<\/p>\n Moreover, the bank\u2019s head of research highlighted that the market has not experienced the type of high\u2011profile platform failures that defined the 2022 cycle, when the collapses of Terra\/Luna and FTX triggered widespread contagion.<\/p>\nStandard Chartered Cuts Bitcoin Target to $100,000<\/h2>\n
Ethereum Could Drop To $1,400<\/h2>\n