Key Points
- Standard Chartered analysts predict a potential further drop in Bitcoin’s price from its current $88,000 level.
- Market analysis reveals a mixed investor sentiment, with some indicators suggesting a possible sell-off.
Bitcoin [BTC] has been facing a challenging time over the past month, with its value consistently on the decline.
In the past day, it has slipped below the $90,000 mark which it had maintained for several months, resulting in a monthly performance decrease of 9.67%.
Further Slide Predicted
The current market sentiment indicates that there may be a further decline in Bitcoin’s price, possibly even down to the $80,000 level.
This is due to increasing market pressure and a potential sell-off by investors.
Standard Chartered analyst, Geoff Kendrick, suggests that Bitcoin’s price could potentially fall by an additional 10%.
This could result in the cryptocurrency’s value dropping to the lower $80,000 region.
Kendrick’s analysis also indicates that a decrease in U.S. Treasury yields, along with Bitcoin’s current lower price, could potentially cause a price rebound.
However, until this happens, Kendrick advises investors to tread cautiously when trading Bitcoin.
Institutional Investors and Bitcoin
Institutional investors have been selling their Bitcoin holdings in large numbers, adding to the selling pressure on the cryptocurrency.
Additionally, Kendrick warns that memecoins like Solana [SOL] have played a part in Bitcoin’s price decline.
A further analysis of investor behaviour in the market has revealed mixed sentiments.
While some investors are buying Bitcoin, others have turned bearish and are selling their holdings.
According to Coinglass data, Bitcoin Spot ETFs recorded their largest single-day outflow yet, with $937.90 million worth of BTC sold by institutional investors.
This significant negative net flow indicates reduced confidence in the market, possibly due to Bitcoin’s price falling below $90,000.
Given these factors, the future of Bitcoin buying remains uncertain.
It is therefore crucial to monitor Bitcoin’s movements in and out of institutional spot holdings, as well as other market fundamentals.
