Crypto markets experienced significant panic selling throughout the day, following a sharp decline in technology stocks, led by Nvidia.
Analyst Insights
Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, offered an optimistic perspective, advising investors to “buy the dip.” According to Kendrick, recent market corrections were partly driven by an overreaction to last week’s executive orders from the Trump administration regarding digital assets and strategic reserve expectations. He had predicted a 10-20% correction, which now appears to have materialized, alleviating much of the selling pressure.
“Buy the dip.” – Geoffrey Kendrick
Volatility and Long-Term Expectations
Kendrick warned that the week might bring further volatility, with major tech companies set to report earnings and the Federal Reserve’s January meeting results on the horizon.
While actions taken by the Trump administration regarding crypto assets may not bring immediate positive price movements, they are expected to boost institutional asset flows into the sector in the coming weeks and months. Analysts at Dey There echoed this sentiment, describing the sell-off as a reaction to a single, sudden event.
“Deepseek FUD is a classic ‘shoot first, ask questions later’ approach.” – Dey There Analysts
Bitcoin has dropped over 4% in the past hours, trading at $99,800. Meanwhile, the tech-heavy Nasdaq 100 index declined by 3%, with Nvidia shares plunging by a staggering 17%.
Investor Takeaways
Despite short-term market uncertainty, analysts remain optimistic about the long-term outlook for digital assets. Institutional investment inflows and a supportive macroeconomic environment are expected to stabilize the market. Investors are advised to remain cautious during periods of sudden selling pressure but keep an eye on the broader narrative shaping the market.
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