Standard Chartered Forecasts More Declines for Bitcoin Amid Market Uncertainty
Standard Chartered predicts Bitcoin could decline by 10% amid bearish market sentiment, reaching an early $80,000s valuation. This is influenced by negative developments surrounding Solana meme coins and potential outflows from Bitcoin ETFs. However, falling US Treasury yields might provide support for Bitcoin’s price. Eric Trump encourages crypto investors to buy Bitcoin during price dips, viewing them as long-term buying opportunities.
Geoff Kendrick, Head of Crypto Research at Standard Chartered, has indicated that Bitcoin may extend its recent losses, potentially experiencing a further 10% decline. Currently, Bitcoin is navigating a sideways trend amidst increasing market skepticism, having reached a three-month low after dropping to $86,800. Meanwhile, altcoins are showing signs of weakness, contributing to the overall market atmosphere.
Kendrick believes that while Bitcoin has managed to maintain relative strength during bearish market conditions, heightened selling pressure is being driven by developments related to Solana meme coins. Recent analysis by on-chain expert ZachXBT suggests that hackers behind Bybit may also be funding Solana-related scams, impacting investor confidence across the ecosystem. As negative sentiment spreads, Kendrick foresees a possible decline to the early $80,000s for Bitcoin.
On a more optimistic note, Standard Chartered posits that falling US Treasury yields could favor Bitcoin’s price. With the US debt yield recently hitting a low of 4.32%, attributed to slowed economic growth and rising inflation expectations, some investors might pivot to Bitcoin in search of better performance. Nevertheless, Kendrick cautions that now may not be the ideal time to enter the market, due to expected outflows from US Bitcoin spot exchange-traded funds (ETFs) that could suppress prices further.
In contrast, Eric Trump, the son of Donald Trump, has urged crypto investors to consider purchasing Bitcoin during dips, asserting that price declines present profitable long-term opportunities. Bitcoin is presently trading at $87,516, having dropped 4.4% in the past day.
In conclusion, Bitcoin is currently experiencing downward pressure, with predictions of an additional 10% decline as market sentiment remains frail. The influence of Solana meme coins and sell-offs from Bitcoin ETFs further contribute to this outlook. However, a decrease in US Treasury yields could potentially enhance Bitcoin’s appeal as a more stable investment. Investors are advised to proceed with caution and conduct thorough research before making any financial commitments.
Original Source: thecryptobasic.com
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