PANews reported on January 27 that Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered Bank, suggested buying on dips when Bitcoin is under pressure due to its growing correlation with the Nasdaq. "The correlation between Bitcoin and the Nasdaq remains strong, far exceeding the correlation with gold," Kendrick said in a statement on Monday. Kendrick said that Nasdaq futures fell 3% due to the news related to DeepSeek. Before the opening of today's market, Nasdaq 100 futures fell 3.3%, and several technology stocks followed suit. Less than a year after its establishment, Chinese artificial intelligence startup DeepSeek launched its flagship AI model R1. The model's performance is reportedly comparable to OpenAI and more cost-effective. Affected by the news, Nvidia plunged more than 13% in pre-market trading.
“The risk now is that if the Nasdaq continues to liquidate during the U.S. trading session (and ahead of this week’s earnings releases — Microsoft, Meta, and Tesla are out on Wednesday — and a potentially disappointing FOMC on Wednesday, then we start approaching other key levels for BTC,” Kendrick said. “Specifically, the average buy level for Bitcoin ETFs since the U.S. election is currently $96,400.”
Kendrick also touched on the Trump administration's cryptocurrency executive order announced last week, which calls for a task force to assess the nation's digital asset reserves. He noted that the news adds uncertainty to the market. "I'm disappointed in two things," Kendrick said. "First, the term 'reserve' instead of 'reserve' sounds more like assets being seized than purchased. Second, the executive order has been issued and any further clarification or action will need to go through Congress, which will take some time." However, with the Trump administration's news now public, Kendrick said that "the disappointment/confusion and the 'hope phase' that followed is over," reducing risk in the Bitcoin market. The next phase, he said, is to "buy the dips."
