The leading cryptocurrency Bitcoin (BTC ($87,784.52)) faced a wave of selling since yesterday evening and fell below $89,000.
Altcoins saw bigger losses, with Ethereum (ETH ($2,384.68)) down 9.5% and Solana (SOL ($136.65)) down 12.4%, while the overall crypto market is down 7.4% in the past 24 hours.
The decline in Bitcoin was attributed to uncertainty in the market and US President Donald Trump’s announcement of plans to impose tariffs on Canada and Mexico.
While investors are wondering whether the decline will continue and when the rise will begin again, Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, made important statements.
Kendrick stated that the risk aversion that emerged in traditional markets also affected the Bitcoin and cryptocurrency sector.
“Bitcoin is caught in a broader sell-off driven by Solana-based memecoins and the general market downtrend.
But Bitcoin still trades relatively well within the crypto space.”
These Levels May Be Seen Before Bitcoin Recovers!
Although the outlook for Bitcoin and cryptocurrencies is negative in the short term, Kendrick stated that he foresees a recovery in the medium term.
Despite the current decline, lower US Treasury yields could support Bitcoin in the medium term.
Kendrick also put a parenthesis on the expectation of a recovery, warning that Bitcoin could fall to as low as $80,000 before a recovery occurs.
While Bitcoin and cryptocurrencies are trying to combat the decline, the US personal consumer spending price index data, which the Fed closely follows to measure inflation and make interest rate decisions, will be released on Friday.
“Following Friday’s data release, U.S. inflation appears to be falling to a level close to the Fed’s 2% target, and if rates weaken, a bullish trend could emerge in the medium term,” Kronos Research Analyst Dominick John said.
*This is not investment advice.
Continue Reading: How Long Will the Bitcoin (BTC) Price Drop Continue? Standard Chartered Warned About This Level! creator solana token
