Bitcoin’s recent price drop has led Geoffrey Kendrick from Standard Chartered to advise investors to “buy the dip.” He attributes the cryptocurrency’s decline to its increasing correlation with the Nasdaq, which has exposed it to tech-driven sell-offs. Kendrick explained that the 3% drop in Nasdaq futures, triggered by the announcement of DeepSeek’s new AI model, caused significant crypto liquidations. DeepSeek, a Chinese startup, unveiled its R1 AI model, which competes with OpenAI’s offerings at a much lower cost. This news spooked investors, leading to a sharp decline in tech stocks like Nvidia, which dropped over 13% in pre-market trading.
Bitcoin followed the Nasdaq’s trend, falling by 5% to $99,000, which Kendrick sees as a signal of the growing relationship between digital assets and the tech sector. Kendrick suggests that if the Nasdaq continues to face sell-offs, especially with upcoming earnings reports from tech giants like Microsoft, Meta, and Tesla, Bitcoin might approach key levels, including $96,400, the average price at which Bitcoin ETFs were purchased post-U.S. elections. He views this level as a potential turning point for the cryptocurrency.
Kendrick also commented on the impact of the Trump administration’s recent executive order on digital assets. The order, which tasks a working group with assessing a national digital asset stockpile, has added uncertainty to the market. However, Kendrick believes the initial confusion has passed, lowering risks for Bitcoin. With the market reacting to the news, Kendrick suggests the next phase is to “buy the dip.”
Despite the recent market turmoil, Kendrick remains optimistic about Bitcoin’s future, predicting that institutional interest will drive Bitcoin’s price up to $200,000 by the end of 2025. He also expects Ethereum to reach a price target of $10,000. Kendrick noted that after the “buy the dip” phase, an “alt-coin alpha” phase will likely follow, where institutional flows will support Bitcoin and Ethereum, while altcoins will experience more limited growth.
The broader crypto market, which saw a significant drop of over 6% in 24 hours, has been impacted by factors beyond the growing tech-sector sell-off. Among these are the global economic environment and the actions of central banks. Kendrick pointed out that the Fed’s stance on interest rates and the European Central Bank’s policies could significantly influence the market. He also mentioned that Trump’s pro-industry stance, including potential crypto policies and his trade relationship with China, could offer long-term benefits for Bitcoin.
While Bitcoin has faced recent challenges due to its connection with the Nasdaq and the broader market sell-off, Kendrick advises investors to view the current price drop as an opportunity to buy. He remains confident that Bitcoin will recover, driven by institutional interest and supportive macroeconomic policies.
