Bitcoin is collapsing and experts are panicking
Summarize this article using:
The $100,000 mark, long considered a hard floor for Bitcoin, fluctuates. It is falling to $108,938 and the asset is moving towards the critical zone. Geoffrey Kendrick, an analyst at Standard Chartered, is now talking about an imminent breakout of this symbolic level. The scenario of a decline below $100,000 is gathering momentum, reigniting tensions in an already stressed market.
In short
- Bitcoin falls to $108,938, threatening the $100,000 psychological barrier.
- Geoffrey Kendrick, an analyst at Standard Chartered, believes a break below $100,000 is now “inevitable”.
- This decline occurs in the context of geopolitical tensions with a direct impact on financial markets.
- For Kendrick, a dip below $100,000 could represent the last buying opportunity before another bull cycle.
Standard Chartered warns: to break $100,000?
In a publicly released note this Wednesday, October 22, Geoffrey Kendrick, Head of Cryptocurrency Research at Standard Chartered, expressed clear concern about recent market developments in the context of Bitcoin’s extreme volatility.
“Now I think a dip below $100,000 seems inevitable“, he stated, specifying that this decline could be “short term“. The warning comes just two weeks after bitcoin hit a new all-time high of $126,000. Since then, the major cryptocurrency has fallen nearly 14% amid heightened fragility in global financial markets.
This decline did not occur in isolation. This coincides with renewed tensions between Washington and Beijing after Donald Trump threatened to significantly increase tariffs on China.
The comments set off a wave of liquidation in the markets, believed to be the biggest since bitcoin’s inception. The price of BTC hit a weekly low of $104,000, dragging the entire crypto market with it.
According to data from Coinglass, nearly $186.52 million was liquidated in derivatives markets in just 24 hours, with more than $155 million of that coming from long positions. This selling pressure highlights the market’s vulnerability.
A strategic buying opportunity?
Kendrick’s analysis is part of a tactical market vision. Not only does he predict an imminent fall, but he also sees it as a potential entry point: “spoiler alert, this will be a buying opportunity“, he says in his note.
He even insists: “stay smart and ready to buy if the price drops below $100,000. This may be the last time Bitcoin falls below this levelThis perspective contrasts with the general air of caution, but finds an echo in certain decisions of the main players.
This is especially true for strategy. The Michael Saylor-led firm took advantage of the recent decline to acquire an additional 168 BTC at an average price of $112,051 per unit. The company now owns 640,418 BTC, equivalent to $69 billion.
If the price of the cryptocurrency were to return to its recent high, this position would be worth over 80 billion. This move shows that some institutional investors see this phase of the downturn as a long-term strategic opportunity regardless of the immediate volatility.
This type of positioning reflects the belief that despite economic fluctuations, Bitcoin’s fundamentals remain solid. If $100,000 is breached, it could actually serve as a catalyst for a new wave of accumulation, especially from players with ready-to-deploy liquidity. However, this hypothesis rests on a delicate balance. If the fall is accompanied by a general loss of confidence, the expected rebound could be delayed.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.