Bitcoin (BTC) Part of Macro-Management Sell-Off, Could Fall Further: Standard Chartered

Bitcoin (BTC) and other digital assets fell as part of a broader macro-chasing sell-off in the market, and there are fears that forced selling could lead to further weakness, investment bank Standard Chartered said in a report on Monday.

Federal Reserve Chairman Jerome Powell spurred the market decline press conference in the middle of December.

The bank noted that investors exposed to bitcoin after November’s US election are now “just pausing” and that forced or panic selling could add to the sell-off. This includes exchange traded fund (ETF) buyers and BTC buyer MicroStrategy (MSTR).

Jeff Kendrick, head of digital asset research at Standard Chartered, wrote: “There is a growing risk of market-to-market volatility.”

If the world’s largest cryptocurrency breaks below the key level of $90,000, it could fall 10% to $80,000, and other digital assets are likely to fall as well.

The bank advises to add the bitcoin after the reversal is complete.

Standard Chartered still expects bitcoin to reach $200,000 by the end of the year, driven by a resurgence of institutional flows under the new Trump administration.

Read more: Bitcoin Bull Tom Lee sees BTC reaching $250k by year end