Bitcoin Faces Bearish Forecast From Standard Chartered
Standard Chartered’s head of digital assets research, Geoffrey Kendrick, predicts Bitcoin’s price could inevitably fall below $100,000. The warning follows a 10% decline in two weeks, as renewed US-China tensions ripple through capital markets. Bitcoin’s role as a hedge asset has weakened, prompting traders to rotate into safer options. According to the bank, the correction may mark Bitcoin’s last trip below six figures.
Renewed Trade Tensions Trigger Crypto Market Selloff
Bitcoin’s recent slump stems from escalating geopolitical stress between the world’s largest economies. These tensions wiped out $19 billion in leveraged crypto positions within a single trading day. Investors are increasingly viewing digital assets as risk-heavy instruments rather than safe havens. As macro pressures mount, traders are unwinding exposure across major cryptocurrencies to preserve capital.
Uptober Rally Stalls as Market Sentiment Turns Cautious
Historically, October has been one of Bitcoin’s strongest months, often dubbed “Uptober” for its bullish momentum. However, 2025 has disrupted that narrative as prices stall near $108,000. Standard Chartered believes macro headwinds and fading liquidity are to blame for the slowdown. The loss of investor confidence marks a sharp contrast to earlier optimism fueled by ETF inflows.
Recommended Article: Institutions Stay Bullish on Bitcoin Into 2026, Says Coinbase
Gold Rotation Signals Risk Aversion Among Investors
Gold has surged past $4,000 per ounce, reflecting the shift from speculative assets to tangible stores of value. Kendrick noted that some investors sold gold to buy Bitcoin during brief rebounds, but the pattern remains inconsistent. Despite Bitcoin’s reputation as “digital gold,” it has struggled to behave as a traditional safe haven. During market panic, the cryptocurrency continues to mirror technology stocks rather than commodities.
Bitcoin’s Role in the Debasement Trade Under Scrutiny
Bitcoin’s correlation with equity markets has reignited doubts about its inflation hedge narrative. Analysts argue that while Bitcoin was designed as a store of value, it performs like a leveraged tech asset under stress. Carlos Guzman of GSR Research said Bitcoin’s claim to resist debasement weakens when it tracks speculative markets. This trend challenges the digital asset’s credibility among conservative institutional investors.
Volatility Undermines Store of Value Perception
The recent $19 billion liquidation event underscores Bitcoin’s exposure to leveraged speculation. Each cycle of extreme volatility makes it harder for Bitcoin to compete with gold or bonds as a stability asset. Despite long-term believers defending its scarcity, its short-term behavior remains tied to risk sentiment. The ongoing correlation with Nasdaq and S&P 500 movements highlights its vulnerability during global downturns.
Analysts Split on Whether This Is the Final Dip
While Standard Chartered expects a drop below $100,000, others interpret it as a last correction before renewed growth. Optimists argue that Bitcoin’s fundamentals, including ETF inflows and hash rate strength, remain solid. Kendrick himself admits that this dip could mark the final opportunity for sub-six-figure accumulation. If institutional demand persists, the next recovery could establish a stronger long-term price floor.
Outlook: Market Fear May Set Stage for Bitcoin’s Rebound
Bitcoin’s current decline reflects cyclical sentiment rather than structural failure, analysts suggest. The combination of inflationary uncertainty, geopolitical risk, and tightening liquidity continues to drive volatility. Once macro conditions stabilize, risk appetite may return, supporting digital assets again. Standard Chartered’s forecast warns of turbulence, but long-term believers still see Bitcoin’s future trending higher once the dust settles.
