[Analysis] Crypto Market Weakness Due to Risk-Averse Sentiment... "Mid-term Rebound Possible"

Claims have emerged that risk-averse sentiment in traditional financial markets has triggered a decline in the cryptocurrency market.

On the 25th (local time), Jeff Kendrick, a cryptocurrency analyst at Standard Chartered (SC), said in an interview with The Block, "The recent decline in the crypto market is influenced by risk-off sentiment in traditional financial markets," adding that "the stock market has been under significant pressure since President Trump's tariff policies." He continued, "Investors who bought at the average purchase price of Bitcoin (BTC) spot ETF ($96,500) have already entered a loss zone," and noted that "this risk-averse sentiment was particularly evident in the selling pressure of Solana (SOL) and Solana-based meme coins rather than Bitcoin."

Ben El Baz, Managing Director of Hashkey Global, also stated, "The cryptocurrency market and U.S. stocks have a strong correlation," explaining that "the crypto market is declining as investors dispose of risk assets like Bitcoin." He added, "The cryptocurrency market is trading below key support levels," and predicted that "if these levels aren't recovered, we could be in for a long-term bearish market."

There were also opinions about the potential recovery of the cryptocurrency market. SC analyst Kendrick said, "Nevertheless, the crypto market has potential for a mid-term rebound," explaining that "the decline in U.S. Treasury yields due to last Friday's preliminary U.S. Manufacturing PMI data could positively impact Bitcoin." However, he added that "it's not yet time to buy the dip" and suggested Bitcoin could likely fall to the low $80,000 range.

Dominic John, a Chronos Research analyst, stated, "We should pay attention to the Personal Consumption Expenditure (PCE) price index to be released this Friday," adding that "if inflation figures approach the Fed's target (2%) and interest rates are cut, the crypto market could turn bullish in the medium term."

Meanwhile, the U.S. January Personal Consumption Expenditure price index is scheduled to be released at 22:30 (Korean time) on the 28th.