Standard Chartered Warns of Potential Bitcoin Weakness, but Maintains $200K Year-End Target
Bitcoin (BTC) and other digital assets have experienced a decline, contributing to a broader market sell-off, with risks of further weakness due to forced selling, according to a report released by Standard Chartered on Monday.
The downturn began following Federal Reserve Chairman Jerome Powell’s hawkish press conference in mid-December. The investment bank highlighted that many investors who gained Bitcoin exposure after the U.S. election in November are now “only breaking even.” Among these investors are those who purchased Bitcoin through exchange-traded funds (ETFs) and MicroStrategy (MSTR), and the bank cautions that forced or panic selling could exacerbate the decline.
“The risk of mark-to-market pain is building,” said Geoff Kendrick, head of digital assets research at Standard Chartered.
The report further warned that if Bitcoin falls below the key support level of $90,000, it could experience a 10% retracement, potentially dropping to the low $80,000s. Such a move could lead to a broad sell-off across other digital assets as well.
Despite the short-term risks, Standard Chartered remains bullish on Bitcoin’s long-term outlook. The bank continues to forecast Bitcoin will reach $200,000 by the end of the year, driven by renewed institutional inflows under the incoming Trump administration.
In the meantime, Standard Chartered advises waiting for the potential retracement to complete before adding to Bitcoin positions, which could present a more favorable entry point.
