Bitcoin (BTC) declined toward $107,000 on Wednesday, as Standard Chartered’s Geoffrey Kendrick predicted an “inevitable” drop below $100,000, noting it would be the last time the top cryptocurrency reached such levels.
Bitcoin to slide below $100,000 before resuming all-time high rally
Bitcoin could drop briefly below the $100,000 mark by the weekend, according to Standard Chartered’s head of digital asset research, Geoffrey Kendrick, in a note to investors on Wednesday.
The analyst claims this dip is “inevitable,” but expects it to be temporary, offering a buying window for investors. He added that it is still uncertain how low Bitcoin could go.
“The question now is how far does Bitcoin fall before finding a base?” Kendrick wrote, highlighting that it may be the “last time ever” BTC falls below the level.
He noted that Bitcoin’s October 6 milestone of $126,000 was in line with short-term price targets, but the top crypto could not sustain momentum due to growing macroeconomic concerns caused by renewed US-China trade tensions.
Kendrick pointed out three factors that could spark a turnaround in Bitcoin’s price, including a sharp selloff in Gold earlier this week, which coincided with an intraday bounce in BTC. This hinted at a possible rotation from the precious metal into cryptoassets.
The report noted that a second focus is on monetary policy, as several key liquidity indicators have been contracting for weeks. Signs of the Federal Reserve halting its quantitative tightening program could set the stage for Bitcoin’s next upward move.
Additionally, Kendrick explained that Bitcoin’s 50-week moving average has held firm since early 2023, when he projected that prices would reach $100,000 by late 2024.
The bank maintained projections for Bitcoin’s price to hit $200,000 despite the slightly bearish weekend prediction.
BTC is trading below $108,000 on Wednesday, down 0.4% over the past 24 hours at the time of publication.