Potential Bitcoin Decline: Experts Warn of Falling Price Towards $80K
Bitcoin’s price has fallen to a three-month low, prompting experts to warn of further declines. Standard Chartered’s Geoffrey Kendrick predicts a drop to the low $80,000s, while former BitMEX CEO Arthur Hayes expresses a similar pessimism. Increased ETF outflows and shifting macroeconomic factors contribute to uncertainty in the market, with Bitcoin potentially plummeting to $70,000.
Bitcoin recently reached a three-month low, prompting warnings from investment bank analysts and industry experts about the asset’s potential further decline. Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, advised against buying the dip, projecting that Bitcoin might drop to the low $80,000s while anticipating increases in spot Bitcoin ETF outflows. Previously, Bitcoin trades were as high as $108,000 but have recently fallen below $87,000 amidst macroeconomic challenges, including President Trump’s revived trade war and changing interest rate expectations.
Kendrick highlighted that daily net outflows from spot Bitcoin ETFs must exceed $1 billion for the price to stabilize. Monday witnessed a striking $516 million in outflows, reflecting waning institutional interest. Historical context indicates that past significant sell-offs peaked at $672 million during a Fed-induced downturn. The current trend suggests the market is bracing for further declines, as experts closely monitor ETF movements.
Arthur Hayes, former CEO of BitMEX, shared his pessimistic outlook, describing the approaching market conditions as akin to “goblin town,” which signifies a bear market. He pointed out that many holders of BlackRock’s spot Bitcoin ETF are hedge funds involved in delta-neutral strategies, indicating a lack of genuine optimism in Bitcoin’s immediate outlook. He anticipated that as these funds react to falling prices, Bitcoin could decline to approximately $70,000, potentially erasing most of its post-election gains.
Greg Magadini, Director of Derivatives at Amberdata, discussed how spot Bitcoin ETFs have introduced new mechanisms for investors to optimize return yields in the crypto market, which were previously unexploited. He explained that while capital costs in the traditional finance world are lower, the introduction of ETFs could shift Bitcoin futures back toward more normalized, risk-free rates, creating new dynamics in investment strategies.
The analysis highlights a significant bearish sentiment among cryptocurrency experts regarding Bitcoin’s future pricing, with projections indicating potential declines toward the $80,000 range or lower. Market dynamics shaped by institutional movements, ETF-related strategies, and macroeconomic factors are crucial to understanding the current downturn. As outflows from Bitcoin ETFs increase, confidence in price stabilization diminishes, prompting analysts to urge caution among investors.
Original Source: decrypt.co
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