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.
Bitcoin’s Key Support at $90K
Standard Chartered highlights $90,000 as a critical support level. A breach could trigger an additional decline of 10%, pushing Bitcoin to $81,000. Panic selling and macroeconomic concerns may exacerbate downward pressure.
Macro Factors Affecting Bitcoin’s Price
Spot Bitcoin ETFs have hit the break-even mark after the U.S. election, leading to reduced upward momentum. Profit-taking among ETF holders could contribute to selling pressure near key support levels. Rising Treasury yields and inflation concerns continue to weigh on risk assets like Bitcoin. Tightened financial conditions limit liquidity, increasing Bitcoin’s vulnerability to sell-offs.
Long-Term Outlook: A $200K Target by 2025
Kendrick expresses optimism about Bitcoin’s potential to reach $200,000 by the end of 2025, citing possible crypto-friendly regulations and increased institutional inflows under the Trump administration. Historical patterns of Bitcoin's post-halving growth support long-term projections.
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.
