Cryptocurrencies faced renewed pressure on Friday in Asia following a warning from Standard Chartered about further potential declines in Bitcoin’s value. This comes as the largest US crypto exchange reported a loss in the fourth quarter. Bitcoin was trading just above $US66,000 ($93,100) at 9.30am in Singapore, having earlier declined as much as 4 per cent in New York to $US65,079, its lowest level this week. Ether also mirrored this trend, hovering around $US1940, near its own weekly low.
Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, anticipates further price declines in the coming months. He cited outflows from exchange-traded funds and a weakening macroeconomic environment as contributing factors. Standard Chartered subsequently lowered its year-end 2026 Bitcoin forecast to $US100,000, a reduction from previous estimates of $US150,000 and $US300,000. The bank cautioned that Bitcoin could potentially fall to $US50,000 before stabilising.
Bitcoin, which experienced a drop to $US60,033 last week, has fallen more than 45 per cent from its October peak of just over $US126,000. Its repeated failures to sustain rebounds signal a decline in speculative demand. Over the same period, the broader cryptocurrency market has witnessed a loss of nearly $US2 trillion in value.
Tony Sycamore, a market analyst at IG Australia, noted that as long as Bitcoin remains above its 200-week moving average near $58,000, there is potential for a recovery towards resistance levels between $US73,000 and $US75,000. However, he cautioned that a sustained break below the $US60,000/$US58,000 zone could trigger a more significant pullback towards the high $US40,000s.
