Bitcoin May Temporarily Dip Below $100K Amidst Global M2 Growth
Global macro signals present both risks and opportunities for Bitcoin (BTC). Standard Chartered predicts a potential dip below $100,000 due to escalating U.S.–China trade tensions. However, this may be temporary, with the 50-week moving average providing support.
- Geoff Kendrick suggests this could be a "buying opportunity" as Bitcoin's price might not fall below $100,000 again.
- Technical indicators and shifts in capital flows, like movement from gold to Bitcoin, support a quick recovery.
Long-term prospects remain positive due to global M2 money supply growth, which historically influences Bitcoin prices. Increased liquidity from central banks reinforces Bitcoin's role beyond speculation, acting as a hedge or portfolio diversifier.
- Institutional interest and on-chain activity are strong, indicating a mid-cycle reset rather than a reversal.
Investors should prepare for short-term fluctuations but focus on long-term gains. Kendrick maintains a bullish target of $200,000 by year-end and $500,000 by 2028, viewing current dips as potential entry points.
- Market remains sensitive to trade wars, Fed policies, and liquidity changes, which could cause significant price movements.
