Bitcoin (BTC) Is Part of Totally Driven Sell-Off, May Fall Further: Standard Chartered

Bitcoin (BTC) and other digital assets fell as part of a broad macro-driven sell-off in the market, and there is a risk that a forced sell-off could lead to further weakness, investment bank Standard Chartered said in a report on Monday.

The reason for the market decline was the statements of Federal Reserve Chairman Jerome Powell Loud press conference In mid-December.

The bank noted that investors who had exposure to Bitcoin after the US elections in November are now “only neutral”, and there is a risk that forced or panic selling could lead to increased selling. This includes exchange-traded fund (ETF) acquirer and BTC acquirer MicroStrategy (MSTR).

“The risk of market pain is growing,” wrote Jeff Kendrick, head of digital assets research at Standard Chartered.

If the world’s largest cryptocurrency breaks below the key level of $90,000, it could fall 10% to the low $80,000 level, the report said, and other digital assets are also likely to decline.

The bank advises adding Bitcoin once the bounce is over.

Standard Chartered still expects Bitcoin to reach $200,000 by the end of the year, supported by the resumption of institutional flows under the new Trump administration.

Read more: Bitcoin Bull Tom Lee sees BTC reaching $250,000 by the end of the year