Bitcoin’s Wild Ride: Buy the Dip or Cry in the Corner? 🚀📉

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What to know:

  • Geoffrey Kendrick of Standard Chartered, who probably has a crystal ball or at least a very fancy spreadsheet, said the crypto selloff was driven by overblown expectations for Trump’s policies last week and the Nasdaq’s correction. He argued the worst for BTC may be over, but then again, he also probably thought Y2K was going to be a thing.
  • LondonCryptoClub analysts, who may or may not have been drinking tea while writing this, called the decline a knee-jerk reaction. They framed it as a local low in a broader bull market with strong macro fundamentals, which is just a fancy way of saying, “Don’t panic, it’s just a flesh wound.”
  • Bitcoin was trading below $100,000, down more than 4% over the past 24 hours, while the Nasdaq was lower by 3%, led by a 15% decline for Nvidia (NVDA). Because apparently, even AI needs a nap sometimes.

Crypto assets saw a panicky decline overnight alongside a Nvidia-led tech stock plunge on DeepSeek’s more efficient artificial intelligence model. Because nothing says “progress” like a market crash, right? 🤖📉

With bitcoin (BTC) at one point sliding from a Sunday high of $105,000 to below $98,000 before bouncing back to its current level just below $100,000, some analysts warned this could be the start of an even deeper pullback. Because when it comes to Bitcoin, the only thing more volatile than the price is the analysts’ predictions.

Among those taking the other side of that trade is Geoffrey Kendrick, global head of digital asset research at Standard Chartered Bank. He’s the guy who probably has a “Buy the Dip” tattoo somewhere on his body.

“Buy the dip,” he said in a Monday morning report. Because nothing says “confidence” like a one-liner in a report.

Kendrick one week ago warned of a potential 10%-20% correction thanks to markets having priced in overzealous expectations of Trump’s crypto executive order and strategic reserve. The overnight selloff, he argued, likely took care of much of this. Because when it comes to market corrections, it’s always better to be fashionably late than early.

While there might be some more pain ahead this week with U.S. big tech companies reporting earnings this week and the Federal Reserve’s January meeting results Wednesday, Kendrick took note of the rapid decline in U.S. Treasury yields — the 10-year note yield now nearing 4.5% — as signaling much of the downward move is done. Because nothing says “stability” like a rapidly declining yield curve.

Despite there not being much near-term price boost from the Trump administration’s digital asset actions, the benefits should ripple through the sector over the next weeks and months through boosted institutional asset flows. Because when it comes to crypto, patience is a virtue, and so is a good cup of coffee.

LondonCryptoClub analysts hit a similar note, seeing the crypto selloff as a knee-jerk reaction to a headline event. Because when it comes to crypto, the only thing more volatile than the price is the headlines.

“The Deepseek FUD [fear, uncertainty, doubt] is a classic shoot first, ask questions later,” LondonCryptoClub analysts said. “Flushes like these amidst a still constructive fundamental macro story that typically mark local lows in a bull trend.” Because nothing says “bull trend” like a good old-fashioned flush.

“Be careful today as a broad derisking can be very mechanical and indiscriminate,” they added. “But this is very much a BTFD [buy the dip] market still.” Because when it comes to crypto, the only thing more important than timing is a good acronym.

Bitcoin at press time was trading down more than 4% over the past 24 hours at $99,800. The tech-heavy Nasdaq 100 was lower by 3%, led by a 15% decline for Nvidia (NVDA). Because apparently, even the tech giants need a breather every now and then.

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2025-01-27 20:12