The digital currency Bitcoin (BTC), currently valued at approximately $96,493, is reportedly showing signs of a possible significant plunge by experts at Standard Chartered. This global bank, with assets worth over $850 billion, warns that if investors perceive a fall below $90,000 as a clear break, Bitcoin could experience a potential 10% price decrease.
On Monday, Bitcoin dipped below $90,000 for the first time since November, reaching a daily low of $89,256. But swiftly, buyers stepped in and Bitcoin resumed trading above $90,000. Currently, as I’m typing this, BTC is being traded at $96,017.86 according to CoinMarketCap data, marking a 4.53% increase in the last 24 hours. The peak for Tuesday so far has been $97,352.66, suggesting a retest of $100,000 could be imminent.
Bitcoin at $80K?
Based on a report by TheBlock, Kendrick stated that Bitcoin is exposed to “convexity risks,” which originate from the potential rise of spot exchange-traded funds (ETFs) being liquidated. This mass withdrawal of funds could lead to a rapid drop in BTC’s value, potentially causing it to plummet to around $80,000 in the near future, according to the executive from the global bank.
In a statement issued on Tuesday, Kendrick indicated that if Bitcoin falls below $90,000, it could potentially decrease by another 10%, reaching the low $80,000 range in the short term. He also mentioned this in his note.
As a crypto investor, I’d say, “After a downturn in the prices of all digital assets, it seems wise to hold back. Once this correction plays out, I believe it will be a good time to start buying again and build up my positions.
According to Kendrick’s forecast, if Bitcoin drops below $90,000, it’s likely that other digital assets will also experience a decrease of approximately 10%. He added that recent purchases of spot bitcoin ETFs since the US election are currently only breaking even. There’s a risk that forced or panic selling could exacerbate the existing market downturn.
1. Purchases of Bitcoin by MicroStrategy and American investors via spot Bitcoin ETFs have equaled their investment at present prices. Kendrick pointed out that there could be short-term discomfort due to mark-to-market risks, but in the long run, it’s projected that Bitcoin will reach $200,000 by year-end.
2. MicroStrategy and U.S. investors buying Bitcoin through ETFs have matched their investments at current prices. Kendrick noted a potential short-term inconvenience due to mark-to-market exposure, but in the long run, analysts foresee Bitcoin reaching $200,000 by year’s end.
3. The recent Bitcoin acquisitions by MicroStrategy and American investors via ETFs have balanced their investments at the current price level. Kendrick warned that short-term pain from mark-to-market adjustments might be imminent, but in the long term, experts predict Bitcoin will soar to $200,000 by year’s end.
4. In the wake of Bitcoin purchases by MicroStrategy and U.S. investors via ETFs, their investments have been leveled out at present prices. Kendrick hinted that temporary discomfort from mark-to-market fluctuations could arise, but in the long run, analysts expect Bitcoin to reach $200,000 by the end of the year.
5. Following Bitcoin purchases by MicroStrategy and U.S. investors through ETFs, their investments now stand even at the current price point. Kendrick flagged a possible short-term setback due to mark-to-market volatility, but in the long term, analysts anticipate Bitcoin will reach $200,000 by year’s end.
A Deeper BTC Analysis
An in-depth look at Bitcoin reveals its stockpiling trend is steadily increasing. The amassing of Bitcoin has soared since October 2024 and has stayed elevated ever since, indicating a general optimism among investors towards BTC.
In simple terms, right now, the buying and selling forces for Bitcoin are balanced, as indicated by a Relative Strength Index (RSI) value of 49.54. This situation suggests that a significant move up or down may occur soon.
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2025-01-15 01:27