Bitcoin (BTC) and other digital assets have fallen as part of a broader macro-driven sell-off in the market and there is a risk that forced selling could lead to further weakness, investment bank Standard Chartered said in a report. on Monday.
The market crash was triggered by Federal Reserve Chairman Jerome Powell’s tough press conference in mid-December.
The bank noted that investors who took on exposure to bitcoin after the US election in November are now “only breaking even” and there is a risk that forced or panic selling could contribute to the sell-off. This includes buyers of exchange-traded funds (ETFs) and BTC acquirer MicroStrategy (MSTR).
“The risk of market value issues is increasing,” wrote Geoff Kendrick, head of digital asset research at Standard Chartered.
If the world’s largest cryptocurrency falls below the key $90,000 level, it could retreat 10% to the low $80,000s, according to the report, and other digital assets are likely to fall as well.
The bank advises adding bitcoins once the pullback is over.
Standard Chartered still expects bitcoin to reach $200,000 by the end of the year, boosted by the resumption of institutional inflows under the new Trump administration.
Read more: Bitcoin Bull Tom Lee Sees BTC Hitting $250K by the End of the Year
