In short
- Standard Chartered analyst Geoff Kendrick recommends buying Bitcoin in three stages of 25%-25%-50% as it recovers from diving below $100,000.
- The Bitcoin-gold ratio has fallen to 25 from its January peak of 38.6, with gold at 66.5% this year versus Bitcoin’s 10.5%.
- Analysts attribute recent crypto weakness to the record US government shutdown draining institutional liquidity, but expect a strong rally when it ends.
How Bitcoin recovers from its slip under $100,000one analyst recommended BTC traders “buy the dip, in stages”.
To do that, Standard Chartered Head of Digital Assets Research Geoff Kendrick said that traders should understand what the maximum is in which they can invest. Bitcoin and then follow these three steps.
First, they should buy 25% of the cap now, adding “the dip below 100K overnight may be the last one ever”. Then he said that they should buy 25% more than the maximum if the Friday “close” is above $103,000.
Finally, Kendrick said that traders should buy the other 50% of the maximum “if/when the Bitcoin-gold ratio returns above 30”.
U Bitcoin-gold ratio it fell to 25. It peaked for the year at 38.6 on January 5, 2025 and was close to regaining that high again in August, when it hit 36.5. But the report has been in decline since August 12 as gold prices rose.
In the past month, gold has sometimes started to fall and positioned Bitcoin for a more favorable comparison. But recent price volatility has cast doubt on BTC catching up with the precious metal.
Users on Myriad are becoming more and more certain gold will surpass Bitcoin this year. At the time of writing, users have estimated that there is an 82% chance that gold will come out on top. Since the beginning of the year, gold gained an amazing 66.5%. Meanwhile, Bitcoin’s latest dive has left it trading 10.5% higher than it was on January 1.
Analysts said Decrypt Tuesday that the shutdown of the American government, which has now become the longest on recordit has been siphoning cash away from institutions that could otherwise deploy through loans, stocks, or cryptocurrencies.
But when the shutdown finally ends and the Treasury starts spending money again, the recovery should be quick, BitMEX analysts said.
“This massive liquidity ‘snap-back’ should trigger a strong rally of relief, aligning perfectly with Bitcoin’s historic year-end strength,” they said.
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