Standard Chartered Analyst Says Bitcoin May Dip Before Major Rally

Analysts at Standard Chartered have just 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 give investors a good chance to buy before the next major price rise.

U.S.-China Ongoing Trade Tensions May Affect Bitcoin

Bitcoin’s price has been falling as trade tensions between the U.S. and China grow. Two weeks ago, the flagship crypto fell to around $104,000 after U.S. President Donald Trump announced a 100% tariff on Chinese goods. Since then, the coin has continued to show weakness, often losing gains soon after small recoveries.

President Trump has added to the uncertainty by saying that a trade deal with China may not happen soon. He also warned that tariffs could rise to 155% if both countries fail to reach an agreement before November. 

Trump said he may meet China’s President Xi Jinping at the APEC Summit next week, but even that meeting is not certain. After his latest comments, Bitcoin quickly lost most of its daily gains.

Analyst Says the Drop Could Be a Buying Chance

Despite the weak market, Geoff Kendrick believes the fall below $100,000 will not last long. In a note to investors, he said the price drop is mainly caused by market fears, not by Bitcoin’s real value. He called it a possible buying opportunity for long-term investors.

Kendrick expects Bitcoin to recover and reach $200,000 by the end of this year. In a recent interview, he explained that as the market cools down from the recent $19 billion liquidation, more investors may buy again, pushing prices higher.

Sharing this correction sentiment is seasoned market analyst Peter Brandt. He recently predicted that Bitcoin could soon reclaim its all-time high of $125,100, but not before one more major correction. 

Rate Cuts and ETF Inflows Could Help Bitcoin

On the bright side, Kendrick said that possible U.S. Federal Reserve rate cuts could support Bitcoin’s price recovery. The analysts added that ongoing inflows into Bitcoin exchange-traded funds (ETFs) are another major reason to stay positive. 

Even in a weaker market, he believes Bitcoin could still reach at least $150,000, which he described as the “bear case” or the lowest likely target.

Like Kendrick, many Bitcoin supporters expect the leading cryptocurrency to reach new highs before the end of the year. In September, Strategy Chairman Michael Saylor said Bitcoin may be headed for another upswing before year-end. 

He added that growing corporate and institutional demand is set to be the driving force behind the surge. Bitcoin is currently trading at $108,136, down by 4.90% in the last 24 hours, according to CoinMarketCap data.