Global banking giant standard chartered recently released its annual list of surprises, which included a scenario where the world’s first and biggest cryptocurrency, bitcoin, could plummet as low as $5,000 in one year. the list also included a fall in oil prices, the impeachment of u.s. president joe biden, a collapse in food prices, and a surge in bankruptcies in 2023 if the crypto bubble were to burst. the list of surprises is now in its eighth edition, and was put together by eric robertsen, the head of global research at standard chartered.
List of surprises was published in late 2022, and the potential ramifications of a crypto bubble burst could be felt throughout 2023. gold, which has received little love in 2022, falling 20% from its highs in march, could soar by 30% if investor confidence in crypto assets were to collapse. furthermore, values of companies on the nasdaq 100 have declined by roughly 25% across 2022, leaving room for the index to fall further than the dot-com crash of the early aughts.
List of surprises from standard chartered is not intended to predict high-likelihood events, but it does illustrate the potential risks of the digital assets sector. if more crypto firms and exchanges find themselves running short of cash, investor confidence in crypto assets could collapse and send people back to the classic safe haven of gold. this could lead to a contraction in the digital assets sector, with financing costs rising and liquidity shrinking for early-stage companies.
https://decrypt.co/116439/bitcoin-could-drop-5000-2023-surprise-standard-chartered
