How Trump risks triggering a Bitcoin sell-off that will drive the price as low as $80,000

All eyes are connected January 20.

That’s the time Donald Trump takes office, and if helium doesn’t rapidly present connected his campaign’s crypto-friendly promises, it could nonstop Bitcoin plummeting, Standard Chartered warned.

Expectations person been riding precocious connected the large displacement successful crypto policies that Trump has promised. He has said helium volition marque the US the “crypto superior of the world.”

But there’s a hazard that Trump doesn’t present connected time one.

“Investors request to beryllium alert of risks successful lawsuit of disappointment,” the bank’s analysts said.

Standard Chartered’s proposal comes arsenic Bitcoin teeters adjacent $90,000. The plus has been wobbly since the Federal Reserve hinted astatine a hawkish 2025 during the cardinal bank’s December meeting.

A “clean break” beneath this terms tag could spark a travel towards $80,000, the slope said. If that happens, analysts foresee regular outflows from spot Bitcoin exchange-traded funds to apical $1 billion, and a contagion effect crossed the cryptocurrency market.

Until now, the biggest regular Bitcoin ETF outflow is $583 million.

Risk of pain

Warning signs are looming.

Since the US election, spot ETF purchases and buys from Bitcoin proxies similar MicroStrategy are astatine breakeven, with astir income successful the past days really occurring astatine a loss.

Roughly 14% of each Bitcoin is held underwater, and 50% to 70% of caller income person been astatine a loss, according to on-chain information cited by Standard Chartered.

“The hazard of symptom is building,” said the analysts.

Target inactive successful sight

Many analysts person acceptable lofty six-figure targets for Bitcoin successful 2025.

Standard Chartered predicts $200,000 per coin, portion pundits similar Maelstrom Chief Investment Officer Arthur Hayes foresee $250,000 this year.

While the roadworthy volition beryllium bumpy, the slope inactive laid retired its strategy.

“Once specified a retracement runs its course, we would urge accumulating again.”

Crypto marketplace movers

• Bitcoin is up 2.5% implicit the past 24 hours to commercialized astatine $99,702.
• Ethereum is up 4.5% to commercialized astatine $3,383.

What we’re reading

• Bitcoin bulls complaint backmost arsenic Trump, system optimism nonstop terms adjacent $100,000 ― DL News
• Gary Gensler’s past trick ― Milk Road
• Virtuals Ecosystem Sees Boost After Team Reveals Details of Buyback-and-Burn Program ― Unchained
• Global M2 is down. Will $BTC follow? 📉 ― Milk Road
• Traders expect XRP to flip Ethereum — but it needs $233bn to marque it happen ― DL News

Pedro Solimano is simply a Markets Correspondent astatine DL News. Got a tip? Email him astatine [email protected].