Bitcoin Faces Potential Downturn Amid Macro Trends: Insights from Standard Chartered
Standard Chartered warns that a surge in panic selling may exacerbate the decline in Bitcoin's value, with a possibility of falling below $90,000.
Bitcoin (BTC) and related digital currencies have been caught in a broader market sell-off, with investment bank Standard Chartered highlighting concerns regarding potential panic-driven decreases in value.
Key Insights:
- A sell-off of digital assets has persisted since mid-December.
- Investors who entered the Bitcoin market post-U.S. elections find themselves at a standstill, barely breaking even.
- Should Bitcoin fall below the critical $90,000 threshold, a further 10% decline could be anticipated, along with a general downturn in other digital assets.
The downturn began following a hawkish press conference by Federal Reserve Chairman Jerome Powell, prompting fears of further market weakness.
Standard Chartered cautions about growing risks associated with panic selling, encompassing buyers of exchange-traded funds (ETFs) and MicroStrategy acquirers. "The risk of mark-to-market pain is building," Kendrick remarked.
Despite current challenges, Standard Chartered maintains an optimistic outlook for Bitcoin, forecasting its price to hit $200,000 by year-end, driven by renewed institutional investments under the incoming administration.
For further readings, check out Bitcoin Bull Tom Lee's predictions for BTC.
