Analysts at Standard Chartered are promising a solid buyout of Bitcoin’s drawdown below $60k. Why.
Today in the second half of the day, the cost of Bitcoin sagged below $60,000, which is happening against the background of the outflow of funds from spot ETFs based on the first cryptocurrency. Nevertheless, the local collapse of the digital asset should not become a reason for panic. According to analysts at banking giant Standard Chartered, such movement on the chart is an extra reason to replenish their reserve of bitcoins and other popular coins at the same time.
Bitcoin dipped below $60,000 this afternoon, and did so for a short while. Judging by the candle shadow on the Binance crypto exchange, the low of this collapse was $59,828.
15-minute chart of the Bitcoin rate on the Binance crypto exchange
Then the cryptocurrency, along with other coins, rebounded. Accordingly, it did not stay below the level of 60 thousand.
Shortly after the market collapse, the situation with the top cryptocurrencies by market capitalisation is as follows.
Rating of the largest cryptocurrencies by market capitalisation today
The XRP cryptocurrency sagged the most on the scale of the day, but the reasons for this are different from the rest of the market. The fact is that tonight the Securities Commission filed an appeal in the case against the token issuing company called Ripple Labs.
Thus the regulator is trying to challenge the decision of Judge Analisa Torres of July 2023, when she did not recognise the cryptocurrency XRP as a security. The judge ruled that unregistered securities transactions do not include sales of coins to ordinary users of centralised crypto exchanges.
Ripple CEO Brad Garlinghouse
The only exception was Ripple’s direct sales of XRP to large investors. The court considered that in this case the income of the latter directly depends on the activity of the issuer, and therefore the crypto-asset can be considered a security. However, the Commission is not satisfied with this decision – it wants to recognise all transactions with the coin as a security, which will further allow the SEC to create new problems for the industry.
Ripple CEO Brad Garlinghouse responded by promising to continue fighting the regulator in court. That said, some legal experts have already suggested that the case could continue until 2026 given what is happening.
What will happen to the cryptocurrency market
In an interview with Decrypt, Standard Chartered’s global head of digital asset research Jeff Kendrick said that Bitcoin’s drop below $60,000 “should be bought.” At the same time, investors should not be intimidated by the fact that BTC is not a completely safe asset amid geopolitical crises.
Traditionally, we remind that any expert can be wrong. Therefore, analysts' comments should be taken only as a possible version of the development of the event. Well, each player in the market should make investment decisions on his own.
Cryptocurrency market collapse
On Tuesday evening, Iran launched a massive missile attack on Israel. The conflict has reached a new round of aggravation, in connection with which some experts expect no less harsh response from Israel.
Kendrick added that given what has happened, Bitcoin should not be seen as a hedge against geopolitical risks, as the first cryptocurrency has fallen as much as other markets.
Instead, investors should treat BTC as a hedge against the problems of traditional finance like bank collapse, de-dollarisation and instability in the US economy.
According to the expert, concerns about risks related to the Middle East were literally doomed to drop the price of BTC below $60,000 before the weekend.
However, the cryptocurrency is not deprived of its growth potential. This is evidenced by increased activity in options trading and expectations about the outcome of the US presidential election, Kendrick said.
A lot of fresh positions have appeared in BTC options over the past couple of days. The volume of open positions for 27 December with an expiry at the $80,000 level on Deribit has jumped by 1,300 BTC in the last two days.
On 2 October, the market saw net outflows from Bitcoin spot ETFs totalling $91.7 million. Among them, the Grayscale (GBTC) fund lost $27.3 million and ARKB lost $60.2 million. Fidelity’s FBTC, meanwhile, saw net inflows of $21 million.
Situation with spot Bitcoin ETFs in the US
Efirium-based spot ETFs recorded net inflows of $14.4 million, with the BlackRock fund (ETHA) receiving $18 million.
Situation with spot Efirium ETFs in the US
FxPro Senior Analyst Alex Kupcikevich attributes the current stagnation in Bitcoin’s price to a broader decline in risk appetite in global markets. He pointed to the “ongoing wave of dollar gains and risk asset declines” caused by the Middle East conflict, as well as profit taking ahead of the US jobs report.
In the afternoon, Standard Chartered analysts' version was confirmed, as Bitcoin fell below $60,000 in just a matter of seconds. However, the market still seems shaky due to geopolitical problems. Therefore, the forecast of the banking giant's representatives is to be tested in practice.
More interesting things are written in our crypto chat. We are waiting for you there to promptly report on important events in a convenient format.
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