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Bitcoin encounters ongoing downside risk due to geopolitical instability, according to StanChart.
Bitcoin has experienced significant volatility, with market factors and geopolitical events complicating predictions regarding where its value might stabilize, according to Standard Chartered’s head of digital assets, Geoffrey Kendrick.
Kendrick pointed out that the recent sharp drop in Nasdaq futures and Bitcoin prices could indicate a potential bottoming out; however, geopolitical uncertainty continues to exert downward pressure in the short term.
Market Uncertainty
Kendrick noted that Bitcoin has undergone considerable price swings, intensified by a notable 5% decline in Nasdaq futures and the ambiguity surrounding critical issues such as US tariffs, the conflict in Ukraine, and possible changes to tax policy.
While these factors have contributed to market risk, Kendrick views them as temporary and suggests that Bitcoin could rebound once these matters are resolved.
Nevertheless, he reiterated that Bitcoin remains susceptible to downward risk and may decline to the post-election price range of $69,000-$76,500 in the near term before finding support.
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He stated:
“Until we gain some clarity on tariffs/Ukraine/tax cuts/Doge cuts it’s challenging to determine a bottom for risk.”
Kendrick also emphasized the impact of President Donald Trump’s recent announcement regarding a strategic crypto reserve that could encompass digital assets beyond Bitcoin. He observed that while the inclusion of non-Bitcoin cryptocurrencies in the market has sparked discussion, Trump’s influence has increased volatility.
Strategy and Bitcoin
Kendrick further analyzed MicroStrategy (MSTR), which recently underwent a rebranding from its previous name, highlighting that the company’s stock has already declined to levels seen after the November US elections. Despite this decrease, Kendrick stressed that the performance of the company’s stock remains closely linked to Bitcoin.
He mentioned that the firm’s stock price has been fluctuating within the $242.69-$261.20 per share range for several days, without closing below this level, indicating support at this point. However, it remains uncertain if this represents the local bottom for the stock due to global economic instability and the underwhelming performance of the equities market.
Kendrick further noted that MicroStrategy’s average purchase price for Bitcoin is $65,000, and its stock could potentially decline further if Bitcoin drops to new yearly lows.
The post Bitcoin faces continued downside risk amid geopolitical uncertainty – StanChart appeared first on CryptoSlate.
