In a recent development, Standard Chartered’s Geoffrey Kendrick has advised the investors to “buy the dip” in Bitcoin, as the cryptocurrency faces pressure from its growing correlation with the Nasdaq.
Kendrick highlighted Bitcoin is now more closely correlated with the Nasdaq than with gold. He explained that a 3% drop in Nasdaq futures, driven by news about the AI startup DeepSeek, led to significant overnight crypto liquidations, highlighting the strong connection between crypto and the tech sector.
Besides, tech stocks like Nvidia saw big pre-market losses, with Nvidia plunging over 13% after DeepSeek unveiled its AI model, which competes with OpenAI at a much lower cost.
Kendrick warned that if the Nasdaq continues to experience sell-offs, especially with major tech companies like Microsoft, Meta, and Tesla reporting earnings, and if the Federal Reserve’s meeting leads to disappointing news, Bitcoin (BTC) could fall to significant price levels.
Specifically, he mentions that the average price at which Bitcoin ETFs were purchased since the U.S. election is around $96,400, suggesting that if BTC drops close to this level, it could be a crucial point for investors to watch.
Kendrick also commented on last week’s crypto executive order from the Trump administration, which sets up a working group to assess a national digital asset stockpile. He highlighted that this announcement has added further uncertainty to the market. Kendrick noted that now that the Trump administration’s crypto news is public, the initial phase of disappointment and confusion has passed, which reduces risks in the Bitcoin market. He suggested that the next phase is to “buy the dip.”
Kendrick outlined three phases for the crypto market: “when hope dies,” “buy the dip,” and “alt-coin alpha.” In the second phase, he expects institutional money to dominate, with BTC and ETH reaching price targets of $200,000 and $10,000, respectively.
After this, he predicts a “light” alt-coin season, driven by institutional flows into BTC and ETH, though he’s watching for new ETF winners (like Litecoin) and regulatory change winners (such as Uniswap).
