Cryptocurrencies continued to weaken on Friday, with Bitcoin trading just above US$66,000 in Singapore after falling to US$65,079 in New York, its lowest level this week (13/02). Ether also hovered near the week’s low at around US$1,940.

Standard Chartered warned of further Bitcoin weakness in the coming months, citing outflows from exchange-traded funds and a weaker macroeconomic environment. Geoffrey Kendrick, the bank’s global head of digital assets research, wrote, “We expect further price capitulation in the next few months.”

Standard Chartered Cuts Bitcoin Year-End Forecast

The bank reduced its year-end 2026 Bitcoin forecast to US$100,000 from US$150,000, down from US$300,000 just months earlier. Kendrick also noted that Bitcoin could fall to US$50,000 before stabilising.

Bitcoin has dropped more than 45% from its October peak of just over US$126,000 and has repeatedly failed to hold rebounds, showing that speculative demand is weakening. Over the same period, the broader crypto market lost nearly US$2 trillion in value.

Analysts Highlight Key Technical Levels

Tony Sycamore, a market analyst at IG Australia, said that as long as Bitcoin stays above the 200-week moving average near US$58,000, there is room for a recovery toward resistance at US$73,000 to US$75,000.

He added that a sustained fall below the US$60,000–US$58,000 range could lead to a deeper pullback toward support in the high US$40,000s.

Market Sentiment Weakens Amid Broader Sell-Offs

Damien Loh, chief investment officer at Ericsenz Capital, said concerns about sell-offs in other asset classes, including technology stocks, are affecting cryptocurrency sentiment.

Coinbase Global also reported a US$667 million loss in the fourth quarter as revenue dropped more than 20% to US$1.8 billion. Before the earnings announcement, customers experienced difficulties buying, selling, and transferring on the platform, which Coinbase later resolved, assuring users, “Your funds are safe.”

Regulatory Pressure and Industry Challenges

Chinese authorities reiterated that Bitcoin, Ether, and stablecoins do not have legal status equivalent to fiat money.

Meanwhile, Monness, Crespi, and Hardt downgraded Coinbase stock to sell, calling expectations of a steady recovery “foolish” given the length of typical crypto bear markets. Coinbase shares fell for a third consecutive day, dropping about 8% to US$141 and down 37% so far this year.

PHOTO: UNSPLASH

This article was created with AI assistance.

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