Finally, the year 2022 is about to end and the investors are already trying to forget about the year. This is because the entire year has continued being a quick sand and it has continued drowning in it in the year 2022.
However, as the year 2023 is about to begin, the cryptocurrency investors are hoping that they will see a bright year for the industry.
Standard Chartered Bank’s Prediction
While the cryptocurrency industry is hoping to see a fresh and a good start in 2023, the Standard Chartered Bank has made an opposite prediction for Bitcoin.
The research teams at the SCB have made a negative prediction about the trading price of Bitcoin in the year 2023.
The banking giant has claimed that the price of BTC may plunge to $5k in the year 2023 and stay that way for a while.
However, it is important that every cryptocurrency broker pays attention to what explanation the SCB has given to back its claim.
Explanation Includes Major Crashes
According to the Standard Chartered Bank, the year 2022 has been a disaster for the cryptocurrency industry. However, the major crashes that took place in the industry were an eye opener for all kinds of investors.
The Terra crash followed by the FTX crash have shown the investors how risk, unpredictable, volatile, and unprotected the crypto trading industry is.
Although the Terra crash took place in May, the industry is facing the impact of the crash to this day. Then in November, the entire crypto industry faced a major setback due to the FTX crash.
The scale of FTX’s crash is much stronger than the Terra crash and its contagion may linger on for many months.
As per the SCB, the contagion may linger for a while and it may cause a lot of damage to the entire crypto industry, especially Bitcoin.
In the upcoming year, the investors will start leaving the industry because of the contagion. With less investors to support the industry, the price of Bitcoin will eventually weaken and fall to $5,000.