Bitcoin Dips in a Broader Market Sell-Off, Further Drops Likely: Standard Chartered

Bitcoin Sell-Off May Deepen as Panic Selling Looms, Standard Chartered Predicts

Bitcoin (BTC) is under pressure amid a macroeconomic sell-off, with Standard Chartered warning that the risk of forced or panic selling could lead to further losses. The investment bank issued a report on Monday highlighting the potential for additional downside if the cryptocurrency breaks below key support levels.

The sell-off has been driven by broader market jitters following Federal Reserve Chair Jerome Powell’s hawkish comments in December, which dampened investor sentiment.

“Investors who entered bitcoin positions post-election are now teetering near break-even,” said Geoff Kendrick, Standard Chartered’s head of digital assets research. “The mounting risk of mark-to-market losses could prompt a wave of panic selling.”

Bitcoin currently hovers near the crucial $90,000 support level, and a break below it could trigger a 10% decline to the low $80,000 range, the report said. The bank also cautioned that such a move would likely lead to further sell-offs across other major cryptocurrencies.

Standard Chartered’s advice to investors is to remain cautious in the near term, potentially looking for opportunities to re-enter the market after any retracement concludes.

Despite the short-term risks, the bank remains bullish on bitcoin’s long-term trajectory, maintaining its end-of-year price target of $200,000. Standard Chartered cites potential inflows from institutional investors under the Trump administration’s anticipated pro-crypto policies as a key driver for the next bull run.