Biden is impeached, food prices collapse and Bitcoin price plummets to $5,000. All of these events are on the list of surprises to come next year, according to analysts at the Standard Chartered bank.
According to the analysts, the Bitcoin price could thus fall to $ 5 thousand. This is because the bubble may finally burst in 2023, the analysts say.
“Returns on crypto investments are falling along with technology stocks, and while the price has stabilized somewhat, the digital currencies have been wreaking havoc.” So writes Eric Robertsen, the bank’s head of global research.
Do people keep faith in the crypto sector?
The Bitcoin price prediction was made as part of Standard Chartered’s annual list of surprises that analysts believe the markets are overlooking.
Other possible surprises for the coming year include a fall in oil prices, the impeachment of US President Joe Biden and a collapse in food prices.
The list is not intended to predict events with a high probability, but rather to consider situations that may very well happen and are therefore not part of the market consensus.
The analysts say that a possible crypto crash could occur if crypto exchanges run short of cash. Investor confidence will then collapse and people will sell their cryptos en masse and return to the classic safe investment: Gold.
If this scenario does indeed take place, the gold price could rise by 30%. The precious metal has received little love in 2022, falling 20% from March highs, but could benefit from a decline in crypto confidence.
The entire tech sector is struggling
As a matter of fact, the analysts also identified the possibility of a broad-based downturn across technology stocks. Most tech stocks are already struggling in 2022, but Standard Chartered analysts suggest the tech crash could get much bigger in 2023.
We are already seeing that starting tech companies are finding it much more difficult to get financing. All in all, the year 2023 could well be a tough year for crypto and tech investors. But mind you, the researchers do not write such a crypto crash as a surprise for nothing. It is therefore also possible that the market will make a comeback in 2023.
