Analysts at Standard Chartered have lowered their short-term cryptocurrency forecasts, warning of a potential continued correction with a recovery expected by year-end. This was reported by The Block citing the company's report.

“In the coming months, we will see further difficulties and a final capitulation of prices for digital assets. The macroeconomic situation is unlikely to provide support until we approach Kevin Warsh's appointment as head of the Fed,” said Jeffrey Kendrick, head of cryptocurrency research at Standard Chartered.

The expert anticipates Bitcoin will fall to $50,000, while Ethereum may drop to $1,400. He believes that at these levels, investors will begin to buy actively.

By the end of 2026, Kendrick predicts that the leading cryptocurrencies will recover to $100,000 for Bitcoin and $4,000 for Ethereum.

The analyst also revised target levels for other digital assets:

  • Solana – $135 (previously $250);
  • XRP – $2.80 (previously $8);
  • BNB – $1,050 (previously $1,755);
  • Avalanche – $18 (previously $100).

Standard Chartered's price forecasts. Source: The Block.

Kendrick noted that the digital asset class will remain under pressure in the short term, but the broader outlook remains unchanged.

Factors Behind the Decline

Kendrick identified the behavior of Bitcoin ETF investors due to unrealized losses as the main reason for the negative market sentiment. According to his estimates, the assets in these funds have decreased by nearly 100,000 BTC since the price peak in October 2025.

Macroeconomic conditions are also weighing on sentiment. Recent U.S. economic data indicates mixed prospects, leading market participants to not expect a reduction in interest rates.

Standard Chartered believes that the current situation may hinder attracting new investments in cryptocurrency in the coming months.

Despite the pessimistic short-term forecast, Kendrick pointed out that the current decline is less severe than during previous cycles. The absence of major crashes and bankruptcies indicates a more resilient crypto market.

It is worth noting that analysts at K33 Research have observed signs of investor capitulation simultaneously in the spot market, ETF sector, and derivatives.