Be careful, Bitcoin price is predicted to be corrected to IDR 809.3 million

Liputan6.com, Jakarta – Standard Chartered Bank warned that Bitcoin's recent decline below USD 60,000 or the equivalent of IDR 971.2 million (assuming an exchange rate of IDR 16,187 per US dollar) could be the start of more significant losses in the near future.

Head of forex and digital assets research at Standard Chartered Bank, Geoffrey Kendrick expressed concern about the price trajectory of the leading cryptocurrency.

Kendrick stated that violating the USD 60,000 support level paved the way for a potential decline to the range of USD 50,000 or the equivalent of IDR 809.3 million to USD 52,000 or the equivalent of IDR 841.7 million.

Kendrick attributed the downward pressure on Bitcoin to a combination of factors. First, he pointed out there were five consecutive days of outflows from US spot Bitcoin exchange-traded funds (ETFs).

Additionally, the launch of spot Bitcoin and Ether ETFs in Hong Kong received a lukewarm response, contributing to the overall negative sentiment.

“Outflows from US spot Bitcoin ETFs, combined with the current average purchase price below USD 58,000, increase the risk of liquidation for some ETF positions,” Kendrick said as quoted by Yahoo Finance, Sunday (5/5/2024).

He noted that more than half of the spot ETF positions were at the bottom, further triggering the potential for liquidation. Kendrick also highlighted broader macroeconomic factors that impact Bitcoin price dynamics.

The worsening of liquidity measures, especially in the United States since mid-April, has affected various assets, including cryptocurrencies. When liquidity gets tighter, this puts pressure on risk assets like Bitcoin.

Even though Standard Chartered Bank previously raised its Bitcoin price prediction target for 2024 and 2025 to USD 150,000 or the equivalent of IDR 2.4 billion and even USD 250,000 or the equivalent of IDR 4.04 billion, respectively, Kendrick maintained this target.

He believes price recovery may take time but anticipates potential upside ahead of the US presidential election.

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