Bitcoin and other digital assets are experiencing a significant downturn amid a macro-driven sell-off, as noted in a report by Standard Chartered. The sell-off began in mid-December following comments from Federal Reserve Chairman Jerome Powell. The report indicates that investors who purchased bitcoin after the U.S. elections in November are now merely breaking even. Moreover, the risk of forced or panic selling is increasing, which could exacerbate the current price decline. If bitcoin drops below the critical threshold of $90,000, it may potentially retrace an additional 10% to the low $80,000s. Standard Chartered also emphasizes that other digital assets are likely to suffer similar declines. Despite the current market conditions, the bank maintains an optimistic outlook, predicting that bitcoin could reach $200,000 by the end of the year, driven by renewed institutional interest under the anticipated Trump administration.

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