Standard Chartered explains the reasons for the collapse of the crypto market

Geoffrey Kendrick, Head of Currency and Digital Asset Research at Standard Chartered, commented on the recent collapse of the cryptocurrency market. He noted that bitcoin BTC $95,687.05 Bitcoin -0.95% Market capitalization $1.9 trillion VOL. 24 hours $0.97 billion remains closely linked to the stock market, especially the Nasdaq index, and this correlation significantly affects its dynamics.

on January 26−27, 2025, bitcoin fell below $ 99,000, and the total volume of liquidations reached more than $ 700 million. Experts cite two factors as the reason for this decline: the low probability of easing the US Federal Reserve’s policy and the presentation of a new AI model by the Chinese startup DeepSeek, which has become a serious competitor for American technology companies.

Kendrick believes that a further stock market crash could cause an additional decline in the main cryptocurrency, especially given the expected financial reports of Microsoft, Meta, and Tesla, as well as the FOMC meeting. Nevertheless, the expert called the current period a «downturn buying phase» and predicts that by the end of 2025, bitcoin will reach $ 200,000 and Ethereum ETH $2,801.17 Bridged Ether (StarkGate) 0.92% Market capitalization $0.24 billion VOL. 24 hours $1.54 billion will reach $ 10,000.

He also commented on US President Donald Trump’s decree to create a working group on cryptocurrencies. According to Kendrick, the use of the term «stocks» rather than «reserves» indicates that the US government is likely to keep the seized crypto assets instead of buying new ones. This decision, according to the expert, may slow down any changes, as it will require Congressional approval.