Standard Chartered’s Geoffrey Kendrick recommends purchasing Bitcoin if it dips below $90,000, indicating it could be a medium-term buying opportunity. Despite macroeconomic pressures, Kendrick upholds a long-term price target of $200,000 by 2025. Advising caution, investors should monitor the market for strategic buying opportunities as Bitcoin trades around $96,593.

Standard Chartered’s head of digital assets research, Geoffrey Kendrick, suggests that Bitcoin (BTC), currently experiencing pressure due to macroeconomic factors, presents a potential buying opportunity if it retraces below $90,000. In a research note dated January 14, Kendrick highlighted the importance of strategic accumulation amidst market volatility. He emphasized that a fall below the critical support level could serve as a favorable point for investment, maintaining the bank’s long-term price projection of $200,000 for Bitcoin by 2025. Kendrick noted, “If we do get a break below, which I could see to the low USD80,000s if $90,000 goes properly, I would view it as an excellent medium-term buying opportunity.” Although Bitcoin is trading near $90,000, the cryptocurrency market is under threat from several macroeconomic risks, including the upcoming US Consumer Price Index (CPI) data and speculated policy changes associated with President Donald Trump’s inauguration on January 20, 2025. Analysts express mixed opinions concerning potential market reactions to the inauguration, with concerns that a sustained decline below $90,000 could lead to deeper losses, particularly testing the $80,000 threshold. Furthermore, the unwinding of exchange-traded funds (ETFs) poses additional risks, given that the average purchase price for Bitcoin held by ETFs and MicroStrategy has hovered around $94,000. Kendrick explained that failure to maintain the $90,000 support level could result in intensified selling pressure, stating, “Convexity risks remain high, and the market could face cascading pressure if the $90,000 level fails to hold.” Despite these immediate challenges, Standard Chartered retains its long-term optimistic outlook for Bitcoin, reiterating the projection of $200,000 by the end of 2025, supported by anticipated institutional investments and favorable economic conditions under the new administration. In the short term, the bank advises investors to approach the market with caution while being attentive to strategic buying opportunities. Currently, Bitcoin is trading at $96,593 according to CryptoSlate data, managing to remain above the crucial $90,000 level.

The cryptocurrency market, particularly Bitcoin, is navigating through turbulent waters influenced by macroeconomic uncertainties, government policy changes, and investor sentiment. Standard Chartered, a reputable financial institution, provides insights into these dynamics through its research on digital assets. Geoffrey Kendrick, the institution’s expert on this subject, posits that significant opportunities may arise during price fluctuations, specifically suggesting that dips below $90,000 should be seen as strategic entry points. The overarching long-term outlook of $200,000 by 2025 indicates confidence in Bitcoin’s value despite the current market pressures.

In summary, Standard Chartered has identified Bitcoin’s potential price fluctuations as significant buying opportunities for investors, particularly if the asset falls below the $90,000 mark. While acknowledging the macroeconomic risks and the potential for increased volatility, the organization maintains a positive long-term outlook for Bitcoin, predicting a price of $200,000 by 2025. Investors are encouraged to remain vigilant and consider strategic entry points amidst the current market uncertainties.

Original Source: cryptoslate.com

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