Standard Chartered analysts indicate that bitcoin could plummet 17% if it breaks below $90,000, potentially reaching $80,000. The current crypto downturn is attributed to economic concerns, and investor confidence wanes amid speculation about interest rate hikes and mixed sentiment surrounding upcoming regulatory changes under President-Elect Donald Trump.

According to Standard Chartered, bitcoin’s price could face a significant downturn if it drops below a critical support level of $90,000. Under this scenario, the flagship cryptocurrency may decline by as much as 17%, potentially reaching a low of $80,000. The recent turbulence in the crypto market is largely influenced by economic uncertainties, with bitcoin already down over 10% from its all-time high of $108,000 reached last month. Analysts predict that if the sell-off intensifies, it could trigger panic selling among investors, exacerbating the decline.

Geoff Kendrick, Standard Chartered’s global head of digital assets research, warned that a breach of the $90,000 threshold could lead to a further 10% decrease in the near term. The market sentiment has been affected by rising interest rate concerns and the recent decline in cryptocurrency capitalization, which dropped to a three-and-a-half-week low. Investors who have entered the market since the presidential election now confront the possibility of losses if the price continues to fall.

There is optimism surrounding President-Elect Donald Trump’s administration, which is expected to implement crypto-friendly policies. However, if these anticipated regulatory changes do not materialize swiftly, investor disappointment may occur, further destabilizing prices. While uncertainty looms in the immediate term, both Kendrick and FxPro chief market analyst Alex Kuptsikevich maintain that a long-term bullish outlook for bitcoin remains viable, with potential for significant price increases as institutional demand recovers under favorable policies.

The current analysis of bitcoin’s price trajectory occurs amid heightened market volatility, influenced primarily by burgeoning economic concerns and shifting policy expectations. Bitcoin experienced a notable peak of $108,000 recently, but ongoing speculation around interest rate hikes and policy tightenings have contributed to a substantial decline in investor confidence. Standard Chartered’s warnings serve as a bellwether for potential market corrections, while the anticipation surrounding the upcoming administration and its approach to cryptocurrency regulation adds a complex layer to the current investment climate.

In summary, bitcoin faces a precarious situation as it hovers around a critical support level of $90,000. Analysts from Standard Chartered have indicated that a breach of this threshold could catalyze a 17% reduction in value, triggering further sell-offs among investors. Despite the immediate risks posed by economic uncertainties and regulatory expectations, there remains a long-term bullish sentiment regarding bitcoin’s potential under supportive governance. Investors should remain vigilant as the situation develops.

Original Source: markets.businessinsider.com

Related posts:

Standard Chartered Predicts Bitcoin Will Reach $200,000 by 2025 Analyst Predicts Bitcoin Could Reach $200,000 by 2025 Amid Growing Institutional Interest Bitcoin Price Forecast: Analyst Predicts BTC Could Reach $200K by 2025 Evaluating Bitcoin’s Price Dynamics: Potential Corrections and Future Prospects