Chief strategist at Standard Chartered said Bitcoin could fall to $5,000 in 2023, but gold could see record growth.

Standard Chartered’s chief strategist, Eric Robertsen, believes that Bitcoin and other cryptocurrencies will further slide downward in the coming year as investors lose confidence in the market due to November’s blowups. However, Robertsen sees gold benefiting from the crypto retreat.

Bitcoin Could Fall by Another 70% to $5,000

In a Bloomberg report on Monday, the Standard Chartered’s strategist said a Bitcoin buffet is one of the “surprise” scenarios that would play out in 2023. Haven declined by over 70% since the all-time high in November 2021. Robertsen foresees Bitcoin falling by another 70% from the current market price to as low as a four-digit $5,000 by next year.

Robertsen further explained that the possible outcome of the scenario happening involves a reversal in interest-rate hikes, more crypto blowups, and “a collapse in investor confidence in digital assets.”

The market outlook for cryptocurrency has mostly turned bearish in recent weeks. Investors’ confidence and inflows in cryptocurrencies have since diminished following the cascade of liquidations and insolvencies spurred by FTX’s collapse in early November. Evidently, amid the market situation, Galaxy Digital CEO Mike Novogratz had to backtrack previous bullish previous for Bitcoin.

Novogratz had predicted that the largest cryptocurrency would reach $500,000 in five years. However, considering the market situation and the Fed’s interest rate hikes, Novogratz adjusted by saying that Bitcoin would go up but not within the stated period, suggesting the industry may experience slow growth.

Crypto Crisis Could Spell More Demand for Gold

Meanwhile, Robertsen believes that the present situation in the cryptocurrency market could result in a potential increase in gold.

Robertsen said gold could see a 30% increase as demand switches from cryptocurrency. ABC Refinery’s Nicholas Frappel also reiterated the predictions, adding that “gold will benefit going forward from the problems in crypto, with the sudden decline in confidence in the crypto ecosystem.”

（By Ibiam Wayas）