Analyst Advises To Buy the Dip In Bitcoin Amid Growing Nasdaq Correlation
In a recent development, Standard Chartered’s Jeffrey Kendrick advised investors to “buy the dip” in Bitcoin as the cryptocurrency faces pressure from a growing correlation with the Nasdaq.
Kendrick emphasized that Bitcoin is now more closely correlated with the Nasdaq than with gold. He explained that Nasdaq futures fell 3% on news of artificial intelligence startup DeepSeek, leading to massive liquidations of cryptocurrencies overnight, highlighting the close connection between cryptocurrencies and the technology industry.
In addition, technology stocks such as Nvidia fell sharply before the market opened. Nvidia’s stock price plunged more than 13% after DeepSeek launched its artificial intelligence model, which competes with OpenAI at a lower cost.
Kendrick warned that if the sell-off on the Nasdaq continues, especially if major tech companies like Microsoft, Meta, and Tesla report earnings, and if the Fed meeting results in disappointing news, the price of Bitcoin (BTC) could will fall significantly.
Specifically, he mentioned that the average price to buy a Bitcoin ETF since the U.S. election was around $96,400, suggesting that if BTC falls close to this level, it could become a key point for investors to watch.
Kendrick also commented on the Trump administration’s cryptocurrency executive order issued last week, which established a task force to assess the nation’s digital asset inventory. He emphasized that the announcement added further uncertainty to the market. Kendrick noted that now that cryptocurrency news from the Trump administration has become public, the initial phase of disappointment and confusion has passed, which has reduced risk in the Bitcoin market. He suggested that the next phase is to “buy the dip.”
Kendrick outlined three phases of the cryptocurrency market: “When Hope is Lost,” “Buy the Dip,” and “Altcoin Alpha.” In the second phase, he expects institutional funding to take over, with price targets of $200,000 for BTC and $10,000 for ETH.
Thereafter, he expects a “light” altcoin season, driven by institutional inflows into BTC and ETH, although he is keeping an eye on new ETF winners (like Litecoin) and regulatory change winners (like Uniswap).
