Standard Chartered Bank has updated its short-term outlook on the cryptocurrency market, suggesting that Bitcoin (BTC) could potentially drop to the $50,000 level and Ether (ETH) could slide as low as $1,400 before a significant recovery occurs. According to a report by Geoffrey Kendrick, the bank’s head of digital assets research, the current market environment is facing significant downward pressure due to a combination of crypto-specific factors and broader macroeconomic trends.
The bank attributes this bearish forecast to recent outflows from U.S. spot Bitcoin exchange-traded funds (ETFs) and a lack of immediate positive catalysts to sustain the record-breaking momentum seen earlier this year. The analysts noted that the breach of certain technical support levels has opened the door for further declines, as investors shift toward a ‘risk-off’ sentiment. Furthermore, the delay in the approval of spot Ether ETFs and general market volatility have weighed heavily on Ethereum’s valuation.
Despite the pessimistic short-term targets, Standard Chartered maintains a long-term bullish stance on the digital asset sector. The report characterizes the anticipated price drop as a ‘clearing’ phase that will remove speculative excess from the market. The bank expects a strong rebound to follow once the market stabilizes and ETF inflows resume, keeping its year-end price targets for Bitcoin and Ether substantially higher than current levels. For long-term investors, the bank views this potential dip as a strategic opportunity to build positions before the next major bull cycle.
Source: Standard Chartered sees bitcoin falling to $50,000, ether to $1,400 before rebound
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