TechFlow news, January 27 — According to The Block, Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered, released a new market analysis indicating that Bitcoin's correlation with the Nasdaq Index is significantly higher than its link to gold. The release of DeepSeek, an AI startup’s low-cost R1 model comparable to OpenAI’s offerings, triggered a 3.3% drop in Nasdaq futures, sparking massive liquidations across the cryptocurrency market.
Kendrick highlighted two major risks facing markets: first, the Nasdaq may continue to decline ahead of earnings reports from Microsoft, Meta, and Tesla this Wednesday; second, the upcoming FOMC meeting by the Federal Reserve could disappoint markets. He also pointed to the average purchase level of Bitcoin ETFs since launch—$96,400—as a key support level to watch.
Regarding the recent executive order on cryptocurrencies issued by the Trump administration, Kendrick noted that changing the term from “digital asset reserve” to “reserve repository” suggests a potential for asset seizure rather than asset purchases, and any follow-up actions would require congressional approval, which could take considerable time.
Nonetheless, he maintains his year-end price targets of $200,000 for Bitcoin and $10,000 for Ethereum, stating that the market has now entered a "buy-the-dip" phase. Institutional capital is expected to lead the next market move, and he recommends focusing on beneficiaries of new ETFs and regulatory developments, such as Litecoin and Uniswap.
