Eric Robertsen, global head of research at Standard Chartered, wrote in a Sunday note that bitcoin could fall about 70 per cent further next year to $5,000, one of the “surprise” events where the market could be “undervalued”.
He stressed that he was not making a prediction, but was assuming outside the current market consensus.
Mr. Robertson added that demand could shift from Bitcoin, the so-called ‘digital version of gold,’ to real gold, pushing the price of gold up 30%.
With the economy struggling, that likely outcome involves a reversal of rising interest rates, as well as more cryptocurrencies “bankruptcies and a collapse of investor confidence in digital assets,” Roberson added.
In a crypto crash and an unexpected spike in gold, gold could rise to $2,250 an ounce, Robertson said.
