Geoffrey Kendrick from Standard Chartered highlighted increasing pressure on Bitcoin in connection with its growing correlation with Nasdaq. The article delves into the main reasons and their implications.
Bitcoin and Nasdaq Correlation
Geoffrey Kendrick noted that Bitcoin is currently more closely linked with Nasdaq than with gold. He explained that a 3% drop in Nasdaq futures, driven by news about DeepSeek startup, led to significant overnight crypto liquidations, emphasizing the strong bond between cryptocurrencies and the tech sector.
Impact of the Tech Sector
Tech stocks like Nvidia also suffered, with Nvidia plunging over 13% after DeepSeek unveiled its AI model competing with OpenAI at a lower cost. Kendrick warned that if the Nasdaq continues to experience sell-offs, especially with major tech companies like Microsoft, Meta, and Tesla reporting earnings, and if the Federal Reserve meeting leads to disappointing news, Bitcoin could drop to significant levels.
Cryptocurrency Outlook and Predictions
Kendrick outlined three phases for the crypto market: 'when hope dies', 'buy the dip', and 'alt-coin alpha'. The second phase expects institutional money to dominate, with BTC and ETH reaching price targets of $200,000 and $10,000, respectively. Kendrick predicts a 'light' alt-coin season driven by institutional flows into BTC and ETH, while watching for new ETF winners and regulatory change winners like Uniswap.
While significant risks exist in the crypto market, experts like Geoffrey Kendrick advise investors to stay alert to market changes to capitalize on opportunities during price dips.
