In a recent development, Geoffrey Kendrick of Standard Chartered has advised investors to “buy the dip” in Bitcoin as the cryptocurrency is under pressure from its growing correlation with the Nasdaq.
Kendrick highlighted that 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 AI startup DeepSeek, led to significant crypto liquidations overnight, highlighting the strong connection between crypto and the technology sector.
Additionally, tech stocks like Nvidia saw big pre-market losses, with Nvidia plunging more than 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 as major tech companies like Microsoft, Meta and Tesla report earnings, and if the Federal Reserve meeting leads to disappointing news, Bitcoin (BTC) could fall to significant price levels.
He specifically mentions that the average price at which Bitcoin ETFs have been purchased since the US election is around $96,400, suggesting that if BTC falls 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 establishes a working group to assess a national stockpile of digital assets. He emphasized that this announcement has further increased uncertainty in the market. Kendrick noted that now that the Trump administration’s crypto news is public, the initial phase of disappointment and confusion is over, reducing risks in the Bitcoin market. He suggested the next phase is “buying 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, although he looks for new ETF winners (like Litecoin) and winners from regulatory changes (like Uniswap).
