Standard Chartered Warns Bitcoin Could Drop Another 10% If It Falls Below $90K Bitcoin (BTC) faces the risk of a 10% short-term decline if its price falls below $90,000 , according to Geoff Kendrick , head of digital asset research at Standard Chartered. In a recent investor note, Kendrick emphasized that macro-economic uncertainty and market sentiment could drive additional panic selling . However, he also projected a $200,000 price target by the end of 2025 , contingent on institutional inflows under the Trump administration. Bitcoin’s Key Support at $90K Risk of a 10% Drop Standard Chartered highlighted $90,000 as a critical support level: Break Below $90K: A breach could trigger an additional decline of 10% , pushing Bitcoin to $81,000 . Market Sentiment: Panic selling and macroeconomic concerns may exacerbate downward pressure. Price Action Context Bitcoin has already approached the $90,000 threshold, reflecting increased volatility following the U.S. election and recent macroeconomic developments. Macro Factors Affecting Bitcoin’s Price Spot ETF Performance Break-Even Point Reached: Spot Bitcoin ETFs have hit the break-even mark after the U.S. election, leading to reduced upward momentum. ETF-Driven Selling: Profit-taking among ETF holders could contribute to selling pressure near key support levels. Economic Conditions Global Uncertainty: Rising Treasury yields and inflation concerns continue to weigh on risk assets like Bitcoin. Market Liquidity: Tightened financial conditions limit liquidity, increasing Bitcoin’s vulnerability to sell-offs. Long-Term Outlook: A $200K Target by 2025 Institutional Inflows Under the Trump Administration Kendrick expressed optimism about Bitcoin’s potential to reach $200,000 by the end of 2025, citing: Pro-Crypto Policies: A second Trump administration is expected to implement crypto-friendly regulations, boosting institutional confidence. Increased Adoption: Anticipated regulatory clarity could attract major institutional inflows, driving demand for Bitcoin. Historical Patterns Post-Halving Growth: Bitcoin’s halving cycles have historically preceded significant price rallies, aligning with Kendrick’s projection. Short-Term Strategy for Bitcoin Investors Risk Management Monitor Support Levels: Watch for price movements around $90,000 and prepare for potential declines to $81,000. Diversify Portfolios: Balance Bitcoin holdings with other assets to mitigate volatility risks. Long-Term Perspective Accumulate on Dips: Investors confident in Bitcoin’s long-term potential may view price corrections as buying opportunities. Focus on Fundamentals: Bitcoin’s scarcity and adoption trends support its role as a long-term store of value. Conclusion Standard Chartered’s analysis underscores the dual nature of Bitcoin’s current market dynamics. While a break below $90,000 could trigger short-term declines of up to 10% , the potential for institutional inflows under favorable regulatory conditions may drive Bitcoin to $200,000 by the end of 2025 . Investors should remain cautious in the near term while considering Bitcoin’s long-term growth trajectory as a foundational asset in the cryptocurrency market. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.
