As the situation around US-China tariffs and trade evolves, investors are reacting, and Bitcoin prices are expected to dip below $100,000 before potentially reaching new highs. Jeff Kendrick from Standard Chartered suggests this could be inevitable, stating that while any downturn may be brief, crossing that threshold seems likely.
Kendrick, the bank’s global head of digital asset research, maintained his year-end target price for Bitcoin at $200,000, indicating a substantial increase in the months ahead.
Currently, Bitcoin is stable around $108,200, according to CoinGecko, but it has dropped roughly 12% from its peak of $126,000 over the last 16 days, a decline Kendrick attributes to a “fear-driven sell-off” influenced by trade issues.
If Bitcoin were to fall into the five-digit range, Kendrick believes it could be a significant moment, possibly the last time it dips below that psychological threshold. Still, he admits there’s uncertainty about how low the cryptocurrency may go before it stabilizes.
Historically, October and November have been strong months for Bitcoin, averaging gains of nearly 20% and 46% since 2013. This trend has led to the nickname “uptober,” but recent changes in the Bitcoin market paint a different picture.
Since its recent peak over two weeks ago, Bitcoin has fallen to about $104,800. A similar pattern occurred in April when prices dropped to $76,300 following the announcement of “reciprocal” tariffs by the White House.
Kendrick observed that gold, typically viewed as a safe haven, has outperformed Bitcoin recently. However, gold prices took a sharp fall recently, signifying a potential shift in that trend.
He noted that the steep drop in gold prices yesterday coincided with a notable increase in Bitcoin’s value, suggesting that investors might be moving funds from gold into Bitcoin. Kendrick expects this trend to continue, which could help Bitcoin find a sustainable low.
On Wednesday, gold prices continued to decline, sitting around $4,075 per ounce, down from a record of $4,381 just days before. Meanwhile, larger cryptocurrencies like Bitcoin and Ethereum were slightly dipping as well.
Analysts indicated that Bitcoin showed resilience as geopolitical tensions eased, and strong earnings reports from Wall Street companies may influence market dynamics further. Some are watching Friday’s inflation report as a potential game-changer.
