The Crypto Shakeout: Standard Chartered Sees a Buying Opportunity Amid Market Turmoil

The cryptocurrency market has taken a sharp nosedive, shedding over 6% of its value in the past 24 hours, bringing the total market capitalization down to $3.5 trillion. Bitcoin alone saw a 5% drop to $99,000 before staging a modest recovery. Despite the chaos, UK banking giant Standard Chartered remains bullish, advising investors to “buy the dip.”

Market Turbulence or Opportunity?

According to Geoff Kendrick, Standard Chartered’s global head of digital assets research, the recent plunge was largely fueled by speculative traders banking on potential policy shifts from President Donald Trump rather than confirmed developments.

“Hope is not a strategy. It can last days, not weeks. When hope dies, digital asset prices will fall 10% to 20%,” Kendrick cautioned in a note to investors on Monday.

Still, he remains optimistic about Bitcoin’s long-term trajectory, predicting it will hit $200,000 by the end of 2025, driven primarily by institutional investments. Additionally, Kendrick suggests that investors keep an eye on altcoins, hinting at the possibility of a “light” altcoin season, though Bitcoin and Ethereum will likely remain dominant due to institutional flows.

The Trigger Behind the Sell-Off

One key catalyst for the market downturn appears to be a 3% drop in Nasdaq futures, triggered by the unexpected rise of Chinese AI startup DeepSeek. The company’s breakthrough artificial intelligence models spooked investors, highlighting Silicon Valley’s growing dependence on AI-driven growth.

BitGalactic analysts emphasize that this link between digital assets and the broader tech sector is growing stronger. As the AI sector evolves, market sentiment around AI-related developments will likely have a greater impact on crypto prices.

Further compounding the pressure on Bitcoin was Trump’s softened stance on China following his “very good” call with President Xi Jinping. The shift reduced market uncertainty, strengthening the dollar and tightening liquidity in the crypto space. Additionally, the Bank of Japan’s recent decision to hike interest rates to their highest levels in 17 years added to the headwinds.

The Bullish Case: A New Crypto Paradigm?

Despite these short-term setbacks, some experts remain firmly bullish. David Brickell, head of international distribution at FRNT Financial, and former forex trader Chris Mills, argue that two key factors will drive the next big rally: Trump’s pro-crypto policies and ongoing interest rate cuts by global central banks.

“Bitcoin and broader crypto are set to reprice significantly higher,” they wrote.

BitGalactic analysts echo this sentiment, emphasizing that Trump’s recent actions—such as pardoning Silk Road founder Ross Ulbricht and hinting at a government-held crypto stockpile—mark a potential paradigm shift in crypto regulation. Markets have yet to fully digest the impact of these policy changes, which could lead to substantial long-term gains.

Meanwhile, while the Federal Reserve has signaled it won’t cut rates this week, other major banks, including the European Central Bank, have hinted at easing monetary policy. Historically, lower interest rates encourage risk-taking, benefiting equities and digital assets alike.

Final Takeaway: Ignore the Panic, Look at the Fundamentals

While volatility is par for the course in crypto, seasoned investors know that long-term trends matter more than short-term price swings. Standard Chartered and BitGalactic agree: rather than panic-selling, investors should focus on the bigger picture. Institutional adoption, regulatory shifts, and macroeconomic policies will play a decisive role in shaping the next phase of the crypto market.

In a world where digital assets and traditional finance are becoming increasingly intertwined, those who navigate the turbulence with a clear strategy may stand to gain the most.