Standard Chartered expert Jeffrey Kendrick stated that the Bitcoin market is entering a new phase that can be described as 'buy on the dip.' Despite the current volatility and correction, he forecasts that the price of the first cryptocurrency could reach $200,000 by the end of the year. These bold expectations are based on market dynamics, Bitcoin's correlation with the Nasdaq stock index, as well as geopolitical and economic factors.
Correlation with Nasdaq and influence of the stock market
Kendrick noted that Bitcoin still shows a high correlation with Nasdaq, highlighting its susceptibility to stock market fluctuations. This week, key tech giants including Microsoft, Meta, and Tesla will present their earnings reports, which are likely to influence market sentiment. Additionally, the upcoming meeting of the Federal Reserve, which, according to the expert, may disappoint investors, is also putting pressure on the markets.
However, the current volatility opens up opportunities for buying on corrections. This strategy is particularly relevant for long-term investors who see Bitcoin not just as an asset but as a means of preserving value in the context of macroeconomic instability.
Trump's order on cryptocurrency policy
Kendrick also commented on the recent order from U.S. President Donald Trump, which creates a task force to develop a cryptocurrency strategy. He noted the interesting use of the term 'stocks' instead of 'reserves,' which may indicate the authorities' intention to hold confiscated crypto assets rather than acquire new ones. This potentially suggests a more restrained position from the U.S. regarding cryptocurrency investments.
However, any changes related to this order require Congressional approval, making quick adjustments unlikely. Thus, investors may remain in a state of uncertainty regarding the authorities' further actions.
Price at $200,000: reality or utopia?
Kendrick's forecast of Bitcoin reaching $200,000 by the end of the year sounds ambitious, but it is backed by confidence in the asset's unique properties. Bitcoin is seen as an alternative to gold and a hedge against inflation, especially in the context of waning trust in traditional financial institutions.
However, it is important to consider the opinions of other experts. For example, Greenlight Capital CEO David Einhorn stated that the cryptocurrency market is currently controlled by speculators, which creates additional uncertainty. This underscores the risks investors face, especially in the short term.
Opinion
The 'buy on the dip' phase that Kendrick mentions may be justified for those willing to make long-term investments. Nevertheless, the Bitcoin market remains extremely volatile, and short-term price fluctuations may disappoint those expecting rapid growth. Decisions from the Federal Reserve, reports from major technology companies, and the implementation of Trump's order will play a key role in shaping trends in the coming months.
What awaits the market next?
The Bitcoin market stands at a crossroads: on one hand, it is supported by growing interest from institutional investors, while on the other hand, the high speculative component and the influence of traditional markets pose a threat to stable growth. Nevertheless, under the current conditions, Kendrick's forecast of reaching $200,000 remains possible. For investors, this is a signal to be cautious and thoughtful in their actions.
