Crypto assets saw a panic decline overnight, alongside tech stocks led by Nvidia falling on DeepSeek’s more efficient artificial intelligence model.
While bitcoin (BTC) at one point slipped from a high of $105,000 on Sunday to below $98,000 before rebounding to its current level just below $100,000, some analysts warned that it could be the start of an even deeper withdrawal.
Among those taking the other side of this trade is Geoffrey Kendrick, global head of digital assets research at Standard Chartered Bank.
“Buy the dip,” he said in a Monday morning report.
Kendrick warned a week ago of a potential 10-20% correction thanks to markets pricing in overzealous expectations of Trump’s crypto executive order and strategic reserve. The overnight selloff, he argued, probably took care of much of that problem.
While there could still be some bumps this week with big U.S. tech companies releasing earnings this week and the results of the Federal Reserve’s January meeting on Wednesday, Kendrick took note of the rapid decline in Treasury yields American – the yield on 10-year bonds is now approaching 4.5%. – as signaling that much of the downward movement is over.
While the Trump administration’s actions on digital assets won’t result in much in the way of price increases in the short term, benefits are expected to trickle down to the sector in the coming weeks and months through increased inflows. of institutional assets.
Analysts at LondonCryptoClub sounded a similar note, viewing crypto selling as a knee-jerk reaction to a major event.
“The Deep Search FUD [fear, uncertainty, doubt] is a classic shoot first, ask questions later,” said analysts at LondonCryptoClub. “Blushes like these amid a still constructive fundamental macro story that typically marks local lows in an uptrend .”
“Be careful today because widespread risk reduction can be very mechanical and indiscriminate,” they added. “But it’s really a BTFD [buy the **** dip] worked again.”
At press time, Bitcoin was trading down more than 4% in the past 24 hours at $99,800. The tech-heavy Nasdaq 100 was down 3%, led by a 15% drop for Nvidia (NVDA).
