Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, warned that Bitcoin could face a 10% pullback if it breaks below the critical $90,000 support level.
Kendrick addressed the “convexity” risk that could push Bitcoin below $80,000 in the near term due to potential unwinding in spot exchange-traded funds (ETFs) in a research note published today.
“We believe a move below $90,000 for Bitcoin would initiate a 10% near-term downside move, pushing prices below $80,000,” Kendrick said. He also noted that such a move would likely lead to declines in the broader digital asset market.
Bitcoin’s recent price action has been weighed down by macroeconomic factors and ETF-related risks, the analyst explained. He noted that spot Bitcoin ETF buying since the US election has now evened out, leaving the market vulnerable to forced or panic selling.
“$90,000 is a key level for Bitcoin, and a drop below it could trigger additional selling pressure across all digital assets,” Kendrick added.
The warning comes amid broader market turbulence following a hawkish turn by Federal Reserve Chair Jerome Powell on Dec. 18. Bitcoin’s price fell to around $90,000 on Jan. 13 amid macroeconomic concerns.
The analyst argued that the sell-off in digital assets could be self-reinforcing and that many recent Bitcoin sell-offs could result in losses, increasing market volatility.
Despite the short-term risks, Kendrick expressed confidence in Bitcoin’s long-term potential and reiterated Standard Chartered’s $200,000 target by the end of 2025. He attributed this bullish outlook to expected institutional inflows under the Trump administration’s pro-crypto policies.
*This is not investment advice.