Bitcoin price today: Could Bitcoin Experience a 17% Pullback?

Bitcoin price today is under scrutiny, with analysts suggesting a potential pullback of around 17%.

Standard Chartered Bank cautions that if bulls wish to continue “enjoying” Bitcoin's rise, they may first need to endure a wave of selling, especially if Bitcoin breaches a critical threshold.

Regulatory Expectations

Cryptocurrency bulls anticipate that President-elect Trump’s deregulation agenda will drive Bitcoin prices up this year. However, they might have to face a sell-off first. Standard Chartered warned that if Bitcoin falls below $90,000, this scenario could unfold.

Geoff Kendrick, Standard Chartered’s Head of Global Digital Asset Research, stated, “We believe that Bitcoin falling below $90,000 will lead to a further decline of 10% in the short term, bringing it close to the $80,000 mark. Prices of all other digital assets could also drop, potentially exacerbating the ongoing sell-off driven by economic concerns.”

Recent Price Movements

Despite Bitcoin briefly reaching a high of $97,000 on Tuesday, it traded near the crucial $90,000 mark the day before. The token has experienced significant volatility this year, similar to other risk assets, due to a wave of risk aversion.

Factors Behind the Decline

The reasons for Bitcoin’s drop are related to the same factors affecting stocks and bonds. Bitcoin is down more than 10% from its all-time high of $108,000 set last month, as investors begin to question whether the Federal Reserve’s 2025 monetary policy will be tighter than previously expected. Generally, higher interest rates lead to declines in Bitcoin’s price.

Kendrick noted that any further declines in cryptocurrency assets from this point could become a “self-fulfilling prophecy.”

Investor Behavior

He observed that since the U.S. presidential election last November, spot ETF investors in Bitcoin have been essentially break-even as long as Bitcoin remains above $90,000. However, further declines could trigger panic selling among investors.

Selling Dynamics
Kendrick explained, “When prices rise, selling mainly comes from long-term holders taking profits. When prices fall, selling primarily comes from short-term holders liquidating losses. On-chain data shows that recently, 50%-70% of sales have been loss-driven.”

What could lead to Bitcoin breaching support levels? While Wednesday's critical CPI report will play a significant role in the short term, overly optimistic policy expectations may disappoint the market in the coming weeks.

Since Trump’s election, a wave of buying spurred by excitement over crypto-friendly policies has swept the market. The incoming administration has promised comprehensive regulatory reforms through key legislation, including a commitment not to sell government-held Bitcoin. However, Kendrick warns that if these changes happen too quickly, investors may feel let down. Adjustments could push Bitcoin down to around $80,000, a roughly 17% drop from Tuesday's peak.

Future Predictions

FXPro Chief Market Analyst Alex Kuptsikevich predicted on Monday that declining risk appetite could intensify Bitcoin's future downtrend, with the potential for Bitcoin to fall to $74,000 in a negative scenario. However, Bitcoin’s return to the crucial $90,000 mark since Monday’s “spike” has bolstered its recovery prospects.

In the long run, both analysts remain optimistic about the leading cryptocurrency. Kendrick forecasts that due to institutional demand for cryptocurrencies reviving under Trump’s policies, Bitcoin could reach $200,000 by the end of this year.

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