Standard Chartered allows the possibility of the BTC further correction due to its high correlation with the stock market

The material is not an investment recommendation and is published for informational purposes only.

What’s new? Standard Chartered analyst Geoffrey Kendrick has noted that bitcoin is still highly correlated with the Nasdaq stock index, and this correlation is much higher than with gold. He added that the 3% drop in Nasdaq futures, triggered by the rise in popularity of China’s DeepSeek neural network and its subsequent crash, triggered a significant liquidation of cryptocurrency positions, strengthening the link between the cryptocurrency and technology sectors.

Material by The Block

What else is known? Nasdaq 100 futures fell 3,3% in the premarket, and several tech companies followed suit. Nvidia shares fell more than 13% in pre-market trading after the DeepSeek team unveiled its flagship R1 AI model. It could reportedly compete with OpenAI products by offering greater efficiency.

“The risk now is that if Nasdaq liquidation continues during the U.S. session (and ahead of this week’s earnings releases — Wednesday sees Microsoft, Meta, and Tesla — and likely disappointing FOMC [Federal Open Market Committee] Wednesday), then we start to approach other key levels for BTC. Specifically, the average purchase level for BTC ETFs since the U.S. election now stands at $96 400,” the analyst noted.

Kendrick also mentioned Donald Trump’s executive order on cryptocurrencies, which tasked a working group with assessing the nation’s reserves of digital assets.

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He noted that the announcement added uncertainty to the market as it talked more about creating a reserve from assets already seized by law enforcement rather than buying new ones. Furthermore, the executive order has already been issued, and any further action would have to be approved by Congress, which will take some time.

However, now that the Trump administration’s news has been made public, Kendrick said that the “hope phase” is over, reducing the risks in the bitcoin market. The next phase, he said, will be to buy on the dip.

He believes this phase will be dominated by institutional funding, and reiterated Standard Chartered’s $200 000 price target for BTC by the end of the year. Kendrick concluded that the third phase will be the altcoin season.