- Standard Chartered analysts suggest BTC could see a further price fall from its current level at $88,000.
- Market analysis shows investor sentiment is well aligned to sell the asset.
Bitcoin [BTC] has struggled in the past month with a consistent decline. In the past 24 hours, it has traded below the $90,000 threshold, which it held for several months, with its overall monthly performance down 9.67%.
Current sentiment suggests there’s a possibility for the asset to slide further and possibly test the $80,000 level as market pressure mounts.
Analyst predicts a 10% slide
According to Standard Chartered analyst Geoff Kendrick, Bitcoin is still on edge and could see an additional 10% loss, which could take the asset to the lower $80,000 region in the near term.
Kendrick’s analysis suggests that a drop in U.S. Treasury yields, combined with Bitcoin trading at the lower price threshold, could influence a price rebound.
Until then, he suggests investors should be cautious when trading Bitcoin, particularly as outflows from institutional investors have surged, indicating selling pressure from this cohort.
In addition to his analysis, he warns that Solana [SOL] memecoins played a role in the price decline.
AMBCrypto conducted further analysis to examine investor behavior in the market and found mixed sentiment.
Traditional investors have turned bearish
The Fund Market Premium, which measures the difference between the net asset value (NAV) of a fund’s holdings and its market price on a scale above 1 and below 0, shows an ongoing bullish sentiment.
This metric had a reading of 1.8 at press time, suggesting high buying activity as it trades above its NAV, entering the positive premium. This indicated that a segment of investors in the market were buying the asset.
Source: CryptoQuant
While a segment of the market remains bullish, another has stayed on the bearish end.
According to the Binary Coin Day Destroyed (CDD), which tracks BTC movement among long-term investors to determine buying or selling trends, bearish sentiment is evident.
When the Binary CDD has a reading of 1—which is currently the case with Bitcoin—it suggests that long-term investors have moved their Bitcoin, possibly for selling, as has historically been the case.
Given the current role of institutional investors in Bitcoin and Geoff Kendrick’s market prediction, AMBCrypto analyzed sentiment among institutional Bitcoin investors.
Bitcoin Spot ETF records largest outflow yet
According to Coinglass data, Bitcoin Spot ETFs (Exchange-Traded Funds) recorded their largest single-day outflow yet, with $937.90 million worth of BTC sold by institutional investors.
Source: Coinglass
When there’s a major negative net flow like this, it signals reduced confidence in the market, which could have been influenced by several factors, including BTC trading below $90,000 and further dipping into the short-term holders’ cost basis.
With mixed sentiment, buying BTC remains uncertain. It’s important to track BTC movements in and out of institutional spot holdings, as well as other market fundamentals.
