Bitcoin's Price Drop Linked to Market Sentiment, Says Standard Chartered

Geoff Kendrick, Head of Digital Asset Research at Standard Chartered Bank, has expressed his views on the current state of the Bitcoin market. Kendrick attributes the recent downturn in Bitcoin to overall market sentiment rather than issues specific to the cryptocurrency itself. Despite the current market conditions, Kendrick maintains a bullish outlook, predicting that Bitcoin will reach $200,000 by the end of the year.

Kendrick identifies two potential catalysts that could drive a recovery in Bitcoin's price. The first is a rebound in risk assets across the broader market. The second is positive news from sovereign nations, such as the United States, purchasing Bitcoin. Regarding the first catalyst, Kendrick believes that clarity on tariff policies or a swift pivot by the Federal Reserve to rate cuts could be the trigger for a rebound. He specifically notes that if the probability of a rate cut at the May meeting increases from the current 50% to 75%, it could spark a significant recovery in Bitcoin's price.

In a bearish scenario, Kendrick warns that if Bitcoin falls below $76,500, it may quickly test the $69,000 support level. However, he reiterates his long-term bullish view, emphasizing that short-term fluctuations do not affect his $200,000 target for Bitcoin by the end of 2025. Kendrick believes that the current market noise actually increases the likelihood of a rate cut, which in turn strengthens long-term confidence in Bitcoin's price trajectory.