Bitcoin Facing Macro Risks
Bitcoin (BTC) is currently facing pressure from macroeconomic factors, with analysts closely watching for any retracement below $90,000 as it could present a medium-term buying opportunity. Standard Chartered’s head of digital assets research, Geoffrey Kendrick, highlighted the importance of strategic accumulation despite the ongoing market turbulence.
Key Points:
- Kendrick sees a break below $90,000 as a favorable medium-term buying opportunity.
- Macro risks, including US CPI data and policy announcements related to Donald Trump’s inauguration, are impacting Bitcoin’s current trading near $90,000.
- ETF unwinding and potential sell-offs could increase volatility in digital assets if the $90,000 level fails to hold.
Impact of Macro Risks
Bitcoin is currently trading near $90,000, with several macro risks adding pressure to its price. Anticipated US CPI data and policy announcements tied to Donald Trump’s upcoming inauguration are contributing to the current market uncertainty.
Analysts are divided on whether the inauguration will trigger a sell-the-news event that could worsen the current downturn. However, most agree that a sustained break below $90,000 could lead to further declines, potentially testing the $80,000 level.
ETF unwinding is also a significant concern, with Kendrick noting that the average Bitcoin purchase price for spot ETFs and MicroStrategy holdings since the US election is around $94,000. A drop below this level could prompt additional sell-offs and increase market volatility.
Long-term Optimism
Standard Chartered has reaffirmed its long-term price target of $200,000 for Bitcoin by the end of 2025, citing expectations of robust institutional inflows and favorable economic policies under the new US administration.
Despite the short-term risks, investors are advised to remain cautious in the near term and watch for strategic buying opportunities. As of the latest data, Bitcoin is trading at $96,593, maintaining its position above the $90,000 level.
