Bitcoin Weighed Down by Macro Sell-Off, Further Losses Ahead, Predicts Standard Chartered

Bitcoin Faces Pressure as Macro Factors Weigh, Sub-$90K Break Could Trigger Deeper Losses: Standard Chartered

Bitcoin (BTC) is grappling with selling pressure as global macroeconomic conditions spark a broader market downturn. Standard Chartered issued a report Monday highlighting the potential for further declines, warning that a break below the critical $90,000 support level could lead to a deeper retracement.

“The recent macro-driven sell-off has placed bitcoin in a precarious position,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered. “Should prices fall below $90,000, we could see a swift 10% decline, testing levels around $81,000.”

The sell-off comes amid heightened investor caution following Federal Reserve Chair Jerome Powell’s hawkish comments in December, which dampened expectations for aggressive rate cuts this year. Additionally, the pressure to liquidate among leveraged traders and recent ETF buyers who entered near peak prices has compounded bitcoin’s volatility.

“With many investors now facing break-even or loss-making positions, the risk of panic selling has increased significantly,” Kendrick noted, adding that such moves could spark a chain reaction of forced liquidations across the crypto market.

Despite these concerns, Standard Chartered remains optimistic about bitcoin’s longer-term trajectory. The bank reaffirmed its year-end target of $200,000, citing the expected return of institutional buyers and more crypto-friendly policies under the new U.S. administration.

For now, however, the bank suggests traders adopt a cautious stance, emphasizing the importance of waiting for clear signs of stability before re-entering the market.