Standard Chartered says corporate demand for Bitcoin is about to make it crashStandard Chartered's recent report warns that corporate demand for Bitcoin might lead to a crash due to potential selling pressure. Here's why ¹:

- *Corporate buyers are vulnerable*: Many new corporate buyers purchased Bitcoin at high prices, and if the market takes a hit, they might dump their coins fast. According to Standard Chartered's analyst Geoff Kendrick, if Bitcoin's price drops below $90,000, half of these companies would be underwater, and a 22% drop from their average buy-in price could force them to sell.

- *Risk of forced selling*: Companies that recently joined the crypto frenzy are loading up at high prices, and if the market declines, they might not withstand the losses. Unlike MicroStrategy, which bought Bitcoin at lower levels and has been holding onto it, newer entrants might not survive a similar drop.

- *Tracking 61 corporate Bitcoin holders*: Standard Chartered is monitoring 61 companies that hold Bitcoin, which collectively own a significant portion of the total supply. If these companies decide to sell, it could crush the market.

- *Price predictions and warnings*: Despite the potential risks, Standard Chartered has made bullish predictions for Bitcoin, forecasting prices of $200,000 by the end of 2025 and potentially reaching $500,000 by 2028, driven by institutional inflows and improved investor access. However, the bank's warnings highlight the importance of caution in the volatile cryptocurrency market.

In summary, while corporate demand has driven Bitcoin's recent price rally, Standard Chartered warns that these buyers might become forced sellers if the market declines, potentially leading to a crash.