Analysts at Standard Chartered have predicted that Bitcoin may face another short-term fall as global tensions rise. Analyst Geoff Kendrick warned that the top coin’s price could drop below $100,000 due to the growing trade dispute between the United States and China. However, he believes the drop will be brief and could provide investors with a good opportunity to buy before the next major price increase.
U.S.-China Trade Tensions May Impact Bitcoin
Bitcoin’s price has been experiencing a decline as trade tensions between the U.S. and China escalate. Approximately two weeks ago, the flagship cryptocurrency fell to around $104,000 following U.S. President Donald Trump's announcement of a 100% tariff on Chinese goods. Since then, the coin has continued to exhibit weakness, often losing gains shortly after experiencing small recoveries.
President Trump has further contributed to the uncertainty by stating that a trade deal with China may not be reached soon. He also cautioned that tariffs could increase to 155% if both countries fail to reach an agreement before November. Trump indicated the possibility of meeting China’s President Xi Jinping at the APEC Summit next week, but even this meeting remains uncertain. Following his latest remarks, Bitcoin quickly relinquished most of its daily gains.
Analyst Suggests Potential Dip as a Buying Opportunity
Despite the current market weakness, Geoff Kendrick believes that a fall below $100,000 will be short-lived. In a note to investors, he stated that the price drop is primarily driven by market sentiment rather than Bitcoin's intrinsic value. He characterized this period as a potential buying opportunity for long-term investors.
Kendrick anticipates that Bitcoin will recover and potentially reach $200,000 by the end of the current year. In a recent interview, he explained that as the market stabilizes following a significant liquidation event, more investors are likely to re-enter, driving prices upward.
Seasoned market analyst Peter Brandt shares a similar sentiment regarding market corrections. He recently predicted that Bitcoin could soon reclaim its all-time high of $125,100, but not before undergoing one more significant correction.
Potential Support from Rate Cuts and ETF Inflows
On a more positive note, Kendrick highlighted that potential U.S. Federal Reserve rate cuts could provide support for Bitcoin’s price recovery. He also pointed to ongoing inflows into Bitcoin exchange-traded funds (ETFs) as another significant reason for optimism.
Even within a weaker market environment, he believes Bitcoin could still reach a minimum of $150,000, which he described as the "bear case" or the lowest probable target.
Similar to Kendrick, many Bitcoin proponents expect the leading cryptocurrency to achieve new record highs before the year concludes. In September, Strategy Chairman Michael Saylor predicted that Bitcoin might be poised for another upswing before the year-end.
He further elaborated that increasing corporate and institutional demand is expected to be the primary driver behind this anticipated surge. According to CoinMarketCap data, Bitcoin is currently trading at $108,136, marking a 4.90% decrease in the last 24 hours.