Bitcoin is being touted to drop to $5,000 in 2023 according to Standard’s Chartered’s Head of Global Research and Chief Strategist.

As initially reported by Bloomberg, a note to investors published on December 4 from the chief strategist of the multinational bank Eric Robertson weighed in on a possible drop in the value of bitcoin linked to a rally in physical gold.

Robertson outlined potential scenarios for 2023 that could see interest rate reversals from hikes in 2022, more bankruptcies in the cryptocurrency sector and negative sentiment towards the market.

This could include a further decline in Bitcoin next year, with a 70% drop from its current market value, while gold could see a rally of up to 30% to the $2,250 per ounce mark.

The last months of 2022 were tumultuous for the broader cryptocurrency ecosystem. The collapse of cryptocurrency exchange FTX and Alameda Research hedge fund Sam Bankman Fried sent shockwaves through the industry in what was already a difficult year.

FTX’s bankruptcy proceedings have already created collateral damage, with cryptocurrency lender BlockFi following in its footsteps, in part due to FTX and Alameda’s “significant exposure” and the liabilities the defunct companies had with the former.

Related: Bankruptcy Court Tells FTX and Alameda They Owe BlockFi $1 Billion, But It’s Complicated

Meanwhile, proponents of the cryptocurrency have offered contradictory predictions for the space in 2023. Noted venture capitalist and blockchain investor Tim Draper has described Bitcoin costing $250,000 next year, highlighting his belief that the FTX fiasco will lead to To further decentralization, adoption of BTC and increased self-guarding by users.

As Cointelegraph previously reported in late November, macro market analyst Henrik Zeberg also outlined a possible rally in the value of Bitcoin along with other risky assets above the $100,000 barrier.

Hedge fund manager Mark Iusko also touted the possible start of the next big rally for Bitcoin in the second quarter of 2023 as the ecosystem begins accumulating BTC in anticipation of the next reward halving event.

Source: CoinTelegraph