- Bitcoin prediction in 2023 following 2022 happenings.
- Grayscale might go bankrupt.
- Standard Chartered says because of this, Bitcoin might go below $5000 in 2023. What do you think?
Grayscale, the asset manager in charge of the world’s largest Bitcoin fund, stated that it would not share proof of reserves with customers.
“We do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve or other advanced cryptographic accounting procedure due to security concerns,” the company said in a statement Friday, 23 2022.
Following FTX’s demise and subsequent bankruptcy proceedings, which revealed that customer funds were missing, multiple crypto exchanges have rushed to release proof-of-reserve audits to assuage investor concerns about the safety of their funds. Others, such as Binance, say they will do so soon.
Grayscale acknowledged in a tweet that withholding proof of reserves will disappoint some but said that this was insufficient justification to forego the intricate security measures that have kept the money of its clients “secure for years.”
The Grayscale Bitcoin Trust, denoted by the ticker GBTC, is the company’s primary investment vehicle. GBTC is selling at a 45% discount to the price of its underlying asset, even though the price of Bitcoin is currently at a multiyear low of about $16,000.
As of last Friday, GBTC had lost 82% of its value over the previous 12 months, compared to 72% for Bitcoin. The spread shows a considerable discrepancy between the share price on the open market and the value of the trust’s only holding.
Each of Grayscale’s digital asset products is set up as a “distinct legal entity,” according to the company’s statement from Friday. Grayscale also emphasized that these digital asset products are “stored under the custody of Coinbase Custody Trust Company.”
Standard Chartered Predicts That Bitcoin Could Fall 70% To $5,000 In A 2023 “Surprise.”
According to Standard Chartered, Bitcoin might fall to $5,000 in a market shock that investors are underestimating.
If that price is achieved, the cost of one Bitcoin will have dropped by over 70% from Monday’s high of just over $17,000.
A variety of potential outcomes that “we consider are under-priced by the markets,” according to Standard Chartered, were described in a note titled “The financial-market surprises of 2023.”
Yields fall alongside technology stock prices, and even though the Bitcoin sell-off is slowing, the harm has already been done.
Insufficient liquidity is becoming a problem for more and more cryptocurrency businesses and exchanges, Eric Robertsen, global head of research at Standard Chartered Bank, wrote in a note published on Sunday. As a result, there have been an increase in bankruptcies and a decline in investor confidence in digital assets.
The relatively unlikely events “have a non-zero likelihood of occurring in the year ahead, and… fall considerably outside of the market consensus or our own baseline beliefs,” according to Robertsen.
Since the industry has been afflicted by a spate of high-profile projects and company failures, the price of Bitcoin has already dropped by more than 60% this year. The biggest and most recent victim is the bankrupt Bitcoin exchange FTX. The effects of FTX’s aftermath are still spreading throughout the market.
According to Robertson, the price decline of Bitcoin would also be accompanied by a rise in gold. He predicted that the precious metal’s price could increase by 30% to $2,250 per ounce “when cryptocurrencies fall further and more crypto businesses succumb to liquidity squeezes and investor withdrawals.”
According to Robertsen, gold may re-establish itself as a haven, with investors flocking to the commodity for stability during market volatility.
“The 2023 gold resurgence comes as equities resume their bear market and the correlation between equity and bond prices returns to negative,” he added.
Closing Thoughts
Standard Chartered’s view is not the only one that is bearish on Bitcoin. Veteran investor Mark Mobius told CNBC last week he believes Bitcoin will fall to $10,000 by 2023 as interest rates rise and the Federal Reserve tightens monetary policy.
