Bitcoin (BTC) Could Fall to the Low $80,000s, But That's an "Excellent Medium-Term Buying Opportunity," Says Standard Chartered

This analysis comes amid concerns over macro risks and high expectations regarding the incoming Trump administration, leading to potential volatility in the digital asset market.

Standard Chartered’s Geoffrey Kendrick has stated that Bitcoin (CRYPTO: BTC) could potentially fall to the low $80,000s if it breaks decisively below $90,000, presenting an “excellent medium-term buying opportunity.”

This analysis comes amid concerns over macro risks and high expectations regarding the incoming Trump administration, leading to potential volatility in the digital asset market.

According to Standard Chartered's report, the average Bitcoin purchase price of spot ETFs and MicroStrategy (NASDAQ:MSTR) since the U.S. election hovers around $94,000.

This means that these major Bitcoin holders are only breaking even, which carries the risk of “forced or panic selling” if Bitcoin's price falls below the $90,000 mark.

Standard Chartered noted that Bitcoin's price briefly dropped to around $90,000 on January 13, adding to the current market pressures.

Standard Chartered’s report also highlights the risk of a self-fulfilling sell-off, driven by ongoing macro concerns, including upcoming US CPI data and market anticipation around the Trump inauguration.

While the report does not predict whether Bitcoin will necessarily fall below $90,000, it does warn of "convexity risks associated with a proper break below" this key level.

Kendrick states that a clean break below $90,000 for BTC would open up 10% of further downside near-term, to the low $80,000s."

He emphasizes however, that such a retracement should be seen as an opportunity and that investors should again begin accumulating long positions after this potential downturn has run its course.

Standard Chartered maintains its long-term bullish outlook, re-iterating its target of $200,000 by the end of 2025, assuming that institutional inflows will resume under the Trump administration.