Bitcoin price slips below $88,000. ‘Do not buy the dip yet,’ one analyst warns

5 months ago 28

Bitcoin has fallen beneath $88,000 for the archetypal clip since November.
Standard Chartered says things volition get worse yet.

Bitcoin slumped 9% connected Tuesday to commercialized beneath $88,000 for the archetypal clip successful 2025.

The terms slump has acceptable disconnected the accustomed siren telephone of “buy the dip” but immoderate marketplace analysts accidental investors shouldn’t instrumentality the bait, astatine slightest not yet.

“Do not bargain the dip yet,” Geoffrey Kendrick, planetary caput of integer assets probe astatine UK slope Standard Chartered, wrote successful a Tuesday note.

Kendrick warned that Bitcoin whitethorn not person bottomed yet and that a determination to the “low 80s” was likely.

Bitcoin traded astatine $89,400 arsenic of reporting time.

Market observers similar BitMEX co-founder Arthur Hayes person adjacent predicted Bitcoin could fall to as debased arsenic $70,000.

For investors who privation to clip the market, Kendrick said Bitcoin’s exchange-traded money flows whitethorn connection immoderate clues.

“Before buying the dip is attractive, I deliberation we get a $1 cardinal ETF outflow day,” Kendrick said successful the note.

Bitcoin ETF’s worst time of outflows was connected December 20 erstwhile it saw $680 cardinal successful outflows. The outflows were triggered by Federal Reserve Chair Jerome Powell indicating a slowdown successful the involvement rate-cutting schedule.

Investors person withdrawn implicit $1 billion from Bitcoin ETFs successful the past trading week, with fractional of that sum happening connected Monday.

With Bitcoin beneath $90,000, astir ETF buyers are papering important losses. That’s due to the fact that the bulk of Bitcoin ETF investors since November bought shares of the assorted funds astatine an mean Bitcoin terms of $96,500, according to Kendrick.

Bitcoin’s falling terms tin unit organization players to rebalance and set their holdings, which successful crook causes a snowball effect that drives further terms declines.

Market observers accidental the deficiency of a caller communicative to spur capitalist involvement successful Bitcoin and cryptocurrencies is besides causing the marketplace slump.

Last week, JPMorgan expert Nikolaos Panigirtzoglou said cryptocurrencies faced a anemic request from some retail and organization buyers.

The study said organization investors were taking profits oregon cutting their losses successful the lack of a caller communicative to spur marketplace growth.

However, Bitcoin’s semipermanent attractiveness “remains solid,” according to Anthony Georgiades, laminitis and wide spouse astatine crypto task money Innovating Capital.

Standard Chartered analysts person antecedently predicted Bitcoin could scope $200,000 this twelvemonth and $500,000 by the extremity of US President Donald Trump’s 2nd term.

Still, investors whitethorn beryllium successful for immoderate short-term pain.

“Fed argumentation and broader marketplace conditions volition apt play a relation successful Bitcoin’s terms action, astatine slightest successful the abbreviated term,” Georgiades told DL News.

Crypto marketplace movers

Bitcoin has slumpted 7% implicit the past 24 hours to scope $89,056.
Ethereum has plummeted implicit the aforesaid play to commercialized astatine $2,426.