Standard Chartered Says Bitcoin’s Drop Below $100,000 May Be the Last Ever

Core Viewpoint - The article discusses the potential for Bitcoin (BTC) to experience a brief decline below $100,000, which may represent the last opportunity for investors to buy before a significant upward trend begins [1][2]. Group 1: Bitcoin Price Predictions - Geoff Kendrick from Standard Chartered anticipates a short-lived dip below $100,000 for Bitcoin, suggesting it could be the last time Bitcoin trades at that level [1]. - Kendrick encourages investors to remain agile and consider buying the dip if it occurs, viewing it as a final entry point before a renewed bull phase [2]. Group 2: Influencing Factors - Three key forces are identified that will determine when Bitcoin's price will turn higher, including the relationship between gold and Bitcoin, liquidity conditions, and technical support levels [4]. - A notable pattern has emerged where a sharp selloff in gold coincided with a bounce in Bitcoin, indicating a potential shift in investor behavior [2][5]. Group 3: Gold and Bitcoin Dynamics - Kevin Rusher notes that despite gold's recent performance, it continues to provide risk management and diversification benefits, although it lacks the ability to generate yield easily [3]. - Kendrick observes a rotation in investment flows from gold to Bitcoin, suggesting that gold has been outperforming Bitcoin recently, but this trend may be reversing [5]. Group 4: Liquidity Considerations - Kendrick highlights that liquidity indicators are tightening, which may be constraining risk appetite among investors [6]. - The key question revolves around when the US Federal Reserve will recognize these conditions as "tight" enough to warrant a response, potentially impacting ongoing quantitative tightening measures [6].