Catenaa, Wednesday, January 15, 2025-Standard Chartered’s Geoff Kendrick warned Tuesday that bitcoin could face a 10% retracement to the low $80,000s if its $90,000 support level is breached.
The prediction comes amid macroeconomic pressure and the potential unwinding of spot exchange-traded funds (ETFs).
In a research note, Kendrick highlighted “convexity risks” as critical, suggesting ETF unwinds could exacerbate selling. “A clean break below $90,000 could result in a broader digital asset retracement,” he said.
Bitcoin recently traded at $95,300, gaining 3.7% over the last 24 hours, according to The Block’s data. However, Kendrick flagged concerns about market dynamics. “Spot bitcoin ETF purchases since the U.S. election are only breaking even,” he said, adding that “forced or panic selling could amplify current macro-driven sell-offs.”
Macroeconomic factors, particularly the Federal Reserve’s hawkish stance since December, have intensified selling pressures across digital assets. Bitcoin fell to $90,000 on Jan. 13, with significant sales occurring at a loss.
Despite the short-term risks, Kendrick maintained a bullish long-term outlook, reiterating Standard Chartered’s $200,000 price target for bitcoin by the end of 2025, supported by anticipated institutional inflows.
“Discretion may be the better part of valor in digital assets for the coming weeks,” Kendrick advised.
