Standard Chartered Warns of Potential Bitcoin Price Drop
Standard Chartered has issued a warning that Bitcoin (BTC) could see a further decline to a range between $69,000 and $76,500 in the next two days. This prediction comes as the cryptocurrency has been experiencing a series of red weekends recently.
Reasons for the Potential Drop
The head of digital asset research at Standard Chartered, Geoffrey Kendrick, attributes the downside risk to continued ETF outflows and increasing hedge fund short positions in the market.
ETF Outflows and Hedge Fund Shorts
Kendrick expressed concerns over the market’s recent weakness and highlighted the absence of breaks that other markets typically enjoy. He mentioned that Bitcoin’s drop below the $80,000 resistance level raises questions about the extent of the sell-off.
- Kendrick pointed out significant ETF outflows nearing $1 billion on Feb. 25
- Despite the outflows, he believes the sell pressure may not be over
- There is a growing disconnect between ETF positions and hedge fund short exposure
Geopolitical and Regulatory Uncertainty
Kendrick reiterated his caution regarding downside risks, noting that Bitcoin breached a key risk level of $90,000. He mentioned that lower US Treasury yields could provide long-term support, but advised against buying the dip prematurely.
Looking ahead, Kendrick expressed skepticism about a weekend rally in risk assets due to looming geopolitical tensions and tariff implementations.
In conclusion, Kendrick warned that if history repeats itself, Bitcoin could potentially slide into the $69,000 to $76,500 range, similar to a previous drop in August 2024.
