DIGIVESTASI - Bitcoin May Decline by 10 Percent if it Breaks Below USD 90,000

Geoff Kendrick, Head of Global Digital Asset Research at Standard Chartered, has issued a warning that Bitcoin is at risk of a 10 percent drop if its price falls below the critical support level of USD 90,000. In his latest report, Kendrick explained that convexity risks could drive Bitcoin prices even lower, potentially reaching USD 80,000, particularly if spot-based exchange-traded funds (ETFs) are canceled.

“We project that a dip below USD 90,000 will trigger a 10 percent correction in Bitcoin prices in the short term, bringing its value below USD 80,000,” Kendrick stated in a report released by Coinmarketcap on Sunday, January 19, 2025.

Kendrick also highlighted that this potential decline could weaken the overall digital asset market. He noted that Bitcoin's recent price movements have been pressured by various macroeconomic factors and ETF-related risks. Additionally, he pointed out that purchases of spot Bitcoin ETFs have stagnated since the U.S. elections, increasing the market's vulnerability to panic selling.

“USD 90,000 is a key level for Bitcoin. If the price falls below it, this could trigger additional selling pressure across the broader digital asset market,” he added.

This warning comes amidst market instability driven by the aggressive stance of Federal Reserve Chair Jerome Powell on December 18. Bitcoin's price briefly dropped to around USD 90,000 on January 13 amid growing concerns over macroeconomic conditions.

According to Kendrick, recent Bitcoin sell-offs could exacerbate market volatility and lead to further losses, intensifying negative sentiment among investors. Nevertheless, he remains optimistic about Bitcoin's long-term prospects, projecting a price target of USD 200,000 by the end of 2025.

This optimism is based on expectations of increased institutional fund inflows driven by pro-crypto policies under the Trump administration.