Bitcoin (BTC) and different digital belongings have dropped as a part of a wider macro-driven sell-off out there and there’s a threat that compelled promoting might result in additional weak spot, funding financial institution Standard Chartered stated in a report on Monday.
The market downturn was triggered by Federal Reserve Chairman Jerome Powell’s hawkish press convention in mid-December.
The financial institution famous that traders who took on bitcoin publicity after the U.S. election in November, at the moment are “only breaking even,” and there’s a threat that compelled or panic promoting might add to the sell-off. This contains exchange-traded fund (ETF) consumers and BTC acquirer MicroStrategy (MSTR).
“The risk of mark-to-market pain is building,” wrote Geoff Kendrick, head of digital belongings analysis at Standard Chartered.
If the world’s largest cryptocurrency breaks under the important thing $90,000 degree, it might retrace 10% decrease to the low $80,000s the report stated, and different digital belongings would additionally possible fall.
The financial institution advises including bitcoin as soon as the retracement is over.
Standard Chartered nonetheless expects bitcoin to hit $200,000 by the tip of the yr, fueled by the resumption of institutional inflows underneath the brand new Trump administration.
Learn extra: Bitcoin Bull Tom Lee Sees BTC Reaching as Excessive as $250K by Yr-Finish
