Standard Chartered Revises Bitcoin Price Prediction Amid Market Challenges
Standard Chartered Lowers Bitcoin Price Target
On February 12, Standard Chartered announced a reduction in its Bitcoin (BTC) price target for 2026, adjusting it from a previous forecast of $150,000 to $100,000. This move coincides with the Crypto Fear & Greed Index experiencing a significant drop to a near-record low of 8 out of 100, indicating heightened market anxiety.
Recent History of Price Target Adjustments
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This marks the bank’s second adjustment in a span of three months. In December, the bank had already revised its expectations downward from an initial target of $300,000. According to a report by Bloomberg, the bank attributes this change to continuous outflows from exchange-traded funds (ETFs), a deteriorating global economic landscape, and postponed interest rate cuts by the Federal Reserve.
Anticipating Further Price Declines
Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, expressed expectations for further price declines in the upcoming months. Bitcoin has already seen its value decline by nearly half since reaching a peak of over $126,000 in October. In addition, investors have pulled approximately $8 billion from U.S. spot Bitcoin ETFs, equivalent to about 100,000 BTC. These trends reflect a waning appetite for risk in the cryptocurrency markets.
Current Market Status and Future Projections
As of the latest data, Bitcoin is priced at $67,870. However, Kendrick warns that the leading cryptocurrency could potentially drop to $50,000 before finding a level of stability.
Challenges Facing Bitcoin
Despite appearing drastic, the recent downgrade is consistent with ongoing market turbulence. Bitcoin, often referred to as ‘digital gold,’ has faced difficulties since a significant selloff in October. Kendrick points out that the broader macroeconomic environment is presenting increasing challenges.
Macroeconomic Factors at Play
In more detail, although there are signs of economic slowing in the United States, market participants are not anticipating additional Federal Reserve rate cuts until later this year. This is expected to coincide with Kevin Warsh taking the position of Fed chair.
Broader Implications for the Cryptocurrency Market
Standard Chartered’s outlook is cautious not only for Bitcoin but also for Ethereum (ETH). The bank has revised its Ethereum price target down from $7,500 to $4,000, which still reflects a potential upside of over 50% from its current price of $1,980. Similar to Bitcoin, Ethereum might experience further declines before a potential recovery, with $1,400 identified as a possible lower bound.
Signs of Market Maturity
Despite the downturn, the bank maintains that the current market conditions are more orderly compared to previous cryptocurrency crashes. According to Kendrick, the recent selloff has been less severe and has notably not resulted in the collapse of any digital asset platforms. He concludes that the market is exhibiting signs of gradual maturation, providing a more stable foundation for future growth.
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