Zinger Key Points
- Altcoins like Litecoin and Uniswap could benefit from upcoming ETF approvals and regulatory clarity, the report suggests.
- The absence of crypto-specific policies in Trump’s initial executive orders has contributed to near-term price volatility.
Standard Chartered‘s Geoffrey Kendrick on Wednesday cautioned that digital asset prices are poised for a potential 10-20% correction as “hope” that is currently driving the markets fades.
This assessment comes after President Donald Trump's day one executive orders made no mention of digital assets, causing an immediate negative effect on prices.
According to Kendrick, current market optimism is based on speculative hopes, which are unsustainable.
Kendrick’s note suggests that this initial drop is “phase 1” before an eventual rebound.
This is based on the fact that it may take “several weeks/months” before the new administration acts on its promises around digital assets.
With the digital asset sector being relatively small, it is likely that when action does come, it is expected to be very large.
Kendrick also notes that institutional money will likely dominate, and this could cause a large surge in Bitcoin’s price, and that "When hope dies digital asset prices will fall 10-20%."
Also Read: Bank Of America CEO Signals Crypto Payment Acceptance, Pending Regulatory Green Light
This analysis further indicates that the asset class will see new all time highs, with prices reaching $200,000 for Bitcoin and $10,000 for Ethereum by the end of the year.
The Standard Chartered note reinforces Kendrick’s analysis, stating that “the absence of news on digital assets on Trump's day 1 was a net negative for prices.”
The note also suggests that prices may continue to drop, and that positive action from the administration is needed to stabilize prices.
The report does, however, encourage investors to buy any dips ahead of what they believe will be medium term gains for both Bitcoin BTC/USD and Ethereum ETH/USD, as well as altcoins with large potential such as Litecoin LTC/USD or Uniswap UNI/USD.
"We recommend buying the dips ahead of medium-term moves higher in both in BTC and ETH," the Standard Chartered report stated, emphasizing that any dip will be a temporary measure before large potential upside.
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