Crypto market faces pressure amid declining appetite for risk and delayed monetary policy adjustments.
Standard Chartered has lowered near-term forecasts for digital assets, projecting that Bitcoin could fall to $50,000 while Ethereum may test $1,400 as investor willingness to take on risk continues to fade.
In a recent note, Geoff Kendrick, head of digital assets research at Standard Chartered, highlighted several factors that could pressure the crypto market in the near term, including weak price action, subdued ETF inflows, and unsupportive macroeconomic conditions.
He noted that the current sell-off, though less severe than in 2022, has already driven prices down significantly, reflecting ongoing downward pressure.
Bitcoin ETF holdings have declined roughly 25% from their October 2025 peak, suggesting that institutional investors are selling rather than buying. Many investors are sitting on large unrealized losses, which could increase the likelihood of continued selling, according to Kendrick.
Mixed US economic data and expectations that the Federal Reserve will maintain rates until a leadership change in June may also keep inflows into digital assets muted, the analyst warned.
As a result, Bitcoin and Ethereum could face further price declines as investor risk appetite continues to wane.
Despite these near-term challenges, Kendrick remains optimistic about the long term. He expects the two leading digital assets to recover through 2026, maintaining his year-end targets of $100,000 for Bitcoin and $4,000 for Ethereum.
