According to Standard Chartered Bank, the recent drop in the price of Bitcoin below the $60,000 mark could be just the beginning, as the crypto could fall as low as $50,000, The Block has reported.
Geoffrey Kendrick, head of forex and digital asset research at the bank, has said the reasons behind this could be a combination of issues specific to the crypto sector, as well as broader economic factors.
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One of the cryptocurrency sector-specific concerns is outflows from spot Bitcoin exchange-traded funds in the US and the negative response to the launch of Bitcoin and Ether spot ETFs in Hong Kong.
These factors, coupled with the fact that the average purchase price of ETFs is currently below $58,000, could lead to a potential sell-off.