Warning From Standard Chartered: Bitcoin Set to Plunge This Weekend

Bitcoin could continue to drop sharply to $69,000 - $76,500 in the next two days, according to a warning from Geoffrey Kendrick, head of digital asset research at Standard Chartered. The main reason cited is the outflow of money from Bitcoin ETFs and the increasing short positions of speculative funds.

Selling pressure from ETFs and speculative funds Kendrick stated that the outflow of funds from Bitcoin ETFs nearly hit 1 billion USD on 25/2, marking a significant milestone. Despite the strong selling pressure, he still believes that the pressure is not over yet. Furthermore, data from the Commodity Futures Trading Commission (CFTC) shows that the short position of speculative funds has increased from 7.9 billion USD to 11.3 billion USD since the US election. Meanwhile, the overall buying momentum from ETFs increased by 71%, indicating that the majority still comes from individual investors - a group prone to panic selling. Political factors and the risk of deep decline Bitcoin recently lost the $80,000 mark, which was once considered a key support level after Trump’s victory. Kendrick warned that the critical risk level of $90,000 has been broken, increasing the risk of further decline. He also recalled the period of August 2024, when Bitcoin dropped by 5.5% in a short period, pushing the price below 50,000 USD. If this scenario repeats, Bitcoin could fall into the range of 69,000 - 76,500 USD. Although the low interest rates of US Treasury bonds may support the price of Bitcoin in the long run, Kendrick advises against bottom fishing too early.