Bitcoin Risks Further Decline Amid Macro Sell-Off and Panic Selling: Standard Chartered

Bitcoin (BTC) finds itself caught in a broader market sell-off, with Standard Chartered warning of potential downside as macroeconomic pressures mount. The bank’s latest report, published Monday, highlights concerns over panic-driven liquidations, which could exacerbate the current weakness.

The cryptocurrency market has been reeling since Federal Reserve Chair Jerome Powell struck a hawkish tone in December, casting doubt on the pace of future rate cuts.

“Investors who entered positions after the U.S. election are now facing significant stress, with many at or near break-even levels,” said Geoff Kendrick, Standard Chartered’s head of digital assets research. “The risk of panic selling looms large, particularly if key support levels are breached.”

Bitcoin has been testing the critical $90,000 mark in recent trading sessions. Standard Chartered’s analysis suggests that a sustained break below this level could open the door for a sharp 10% correction, with prices potentially sliding into the low $80,000 range.

The report also noted that broader crypto markets would likely follow bitcoin’s lead, amplifying the volatility across digital assets.

Despite the near-term challenges, the bank remains optimistic about bitcoin’s long-term potential. It continues to forecast a price target of $200,000 by year-end, driven by expected institutional inflows and favorable regulatory changes under the incoming Trump administration.

For now, Standard Chartered recommends investors wait for clearer signs of stabilization before committing to new positions, advising caution amid the ongoing turbulence.