Standard Chartered recently revised its projections for digital assets, indicating that Bitcoin may drop to $50,000 and Ethereum could test $1,400. This bearish outlook is largely attributed to diminishing investor enthusiasm, a trend evident in the declining price of cryptocurrencies.
Geoff Kendrick, the head of digital assets research at Standard Chartered, pointed out that the current market conditions are unfavorable for cryptocurrencies. Although the present sell-off is not as severe as last year’s downturn, it has already led to significant price drops, reflecting persistent selling pressure.
Institutional interest appears to be waning, with Bitcoin ETF holdings falling around 25% since their high in October 2025. This decline signals that institutional investors are more inclined to sell than to buy at this juncture. Many retail investors are currently facing substantial unrealized losses. This situation could lead to further selling as investors adjust their positions.
In addition, recent mixed economic data from the US, coupled with expectations that the Federal Reserve will hold interest rates steady until a leadership transition in June, suggests that inflows into digital assets will remain subdued for the time being.
Given these factors, Bitcoin and Ethereum could both experience additional downward pressure as the appetite for risk among investors continues to diminish.
Despite these immediate challenges, Kendrick remains optimistic about the long-term prospects for these leading cryptocurrencies. He believes that both Bitcoin and Ethereum will make a comeback by 2026, with price targets of $100,000 for Bitcoin and $4,000 for Ethereum by the end of the year. This outlook underscores the persistent belief among some analysts that despite short-term volatility, the long-term trajectory for digital assets remains positive.