Standard Chartered Says Bitcoin’s Drop Below $100,000 May Be the Last Ever
Welcome to the US Crypto News Morning Briefing, recapping the most important developments in crypto for the day ahead.
Grab a coffee and breathe as markets enter another big moment for Bitcoin (BTC). While some traders are preparing for a brief decline below $100,000, others are preparing for buying, which could be the last major decline before the next wave of momentum builds.
Geoff Kendrick, Head of FX and Digital Assets Research at Standard Chartered, believes a short-term drop in Bitcoin price below $100,000 is likely. But he says this may be the last time Bitcoin trades at this level.
“…be smart and be prepared to buy the dip below $100,000,” Kendrick warned investors in an email comment.
He said the potential decline could provide a final entry point before a renewed bull phase. According to Kendrick, three main factors will determine when Bitcoin will rise:
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Gold and Bitcoin flows,
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Liquidity indicators and
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Technical support levels.
Kendrick noted a notable pattern between gold and Bitcoin, saying Tuesday’s sharp gold sell-off coincided with a strong intraday rise in Bitcoin. RAAC founder Kevin Rusher attributed the sales to profit-taking, predicting long-term price consolidation.
However, Rusher says that even if the price of gold remains flat, the precious metal will continue to provide risk management and diversification benefits in portfolios.
“Gold’s record this year is certainly not typical for this asset, but it remains an uncorrelated alternative. But what is still missing is the ability to easily trade gold and generate returns. This will enable investors to not only buy gold for protection, but also continue to hold it for the long term,” Rusher told BeInCrypto.
Kendrick, meanwhile, expects more of this rotation to emerge in the medium term and sees it as constructive evidence of a market bottom forming.
“This was probably a sell gold, buy Bitcoin flow… Gold has been outperforming Bitcoin lately… maybe that’s starting to change,” Kendrick added.
The second factor it tracks is liquidity. According to Geoff Kendrick, some measures are mostly tightened due to financial conditions restricting risk appetite.
The real question, he says, is when the Federal Reserve will consider these conditions “tight” enough to react. This could mean accepting tensions or halting the ongoing quantitative tightening (QT) program.
