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In a new research note, Standard Chartered bank is advising investors to “buy the dip” after bitcoin’s price plunged below $100,000 on Monday, erasing more than 6% of the value of the crypto market in the last day. The current value of the global crypto market stands at just $3.4 trillion, though the crypto industry hoped to ride positive sentiment around Donald Trump’s victory to new heights.
“Hope is not a strategy,” explained Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research. “When hope dies, digital asset prices will fall 10% to 20%.”
The massive popularity of DeepSeek, a Chinese AI app rivaling OpenAI’s ChatGPT, has also caused prices to crater, given the continuing coupling of tech stocks with bitcoin prices. “This relationship highlights the continued strong — and strengthening — relationship between digital assets and the tech sector,” Kendrick said.
However, Standard Chartered remains optimistic about bitcoin’s forecast in 2025, with institutional interest possibly helping to accelerate bitcoin’s potential price jump to $200,000 by the end of the year, according to research from the bank.
Last week, Trump fulfilled two key pledges to the crypto industry: releasing Silk Road founder Ross Ulbricht — a folk hero in the bitcoin and libertarian communities — and signing a crypto executive order that, among other notable pledges, promises to create regulatory clarity for the digital asset industry, promote stablecoins, prevent the de-banking of the crypto sector, and prohibit the creation of a central bank digital currency.
Meanwhile, Standard Chartered’s Kendrick also cautioned investors to look at altcoins, or cryptocurrencies other than bitcoin that are expected to explode in the coming year. “Just after phase two begins, in my mind, an altcoin light season will begin,” Kendrick said. “[I]nstitutional flows will drive [bitcoin] and [ethereum], partly offsetting rotation into alts.”