Standard Chartered analyst Geoff Kendrick recommends a three-stage strategy to buy the Bitcoin dip amid U.S. government shutdown pressures. Allocate 25% of your maximum investment now, another 25% if Bitcoin closes above $103,000 on Friday, and the final 50% when the Bitcoin-gold ratio exceeds 30, positioning for potential recovery.
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Stage 1: Invest 25% immediately – With Bitcoin dipping below $100,000, this could be the last major opportunity as markets stabilize.
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Stage 2: Add 25% if Friday’s close surpasses $103,000 – This confirms upward momentum post-dip.
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Stage 3: Deploy remaining 50% when Bitcoin-gold ratio rises above 30 – Currently at 25, this signals Bitcoin’s strength over gold, which has gained 66.5% year-to-date.
Discover Standard Chartered’s three-stage Bitcoin dip strategy amid U.S. shutdown impacts. Learn expert tips to invest wisely and capitalize on crypto recovery for long-term gains. Stay informed on BTC trends today.
What Is the Three-Stage Strategy to Buy the Bitcoin Dip?
The three-stage strategy to buy the Bitcoin dip involves dividing your maximum Bitcoin investment into portions to mitigate risk during market volatility, as outlined by Geoff Kendrick, Head of Digital Assets Research at Standard Chartered. Traders should first purchase 25% of their limit immediately, capitalizing on the recent drop below $100,000, which Kendrick views as potentially the final significant dip. Subsequent stages hinge on price thresholds and ratios to ensure entry at strengthening points, promoting disciplined accumulation amid external pressures like the ongoing U.S. government shutdown.
How Does the U.S. Shutdown Affect Bitcoin Prices?
The prolonged U.S. government shutdown, now the longest on record, has diverted institutional liquidity from assets like cryptocurrencies, equities, and lending, contributing to Bitcoin’s recent volatility and slip below $100,000. Analysts from BitMEX note that this cash siphoning has delayed deployments into riskier markets, but the eventual resolution could unleash a “massive liquidity snap-back,” triggering a swift recovery. Gold, by contrast, has benefited from safe-haven demand, surging 66.5% since January, while Bitcoin remains up 10.5% year-to-date despite the plunge. Expert insights from COINOTAG interviews highlight that Bitcoin’s historical end-of-year rallies often amplify such relief, potentially aligning with seasonal strength for a strong rebound once fiscal spending resumes.
Frequently Asked Questions
What Should Traders Do If Bitcoin Recovers Above $103,000 This Week?
If Bitcoin closes above $103,000 on Friday, traders following the three-stage strategy should invest an additional 25% of their maximum allocation. This step validates the dip’s bottom and positions for further upside, reducing exposure to prolonged downturns while building holdings gradually, as advised by Standard Chartered’s research team.
Why Is the Bitcoin-Gold Ratio Important for Crypto Investors?
The Bitcoin-gold ratio compares Bitcoin’s price to gold’s, currently at 25 after peaking at 38.6 in January 2025. A rise above 30 indicates Bitcoin outperforming the traditional safe-haven asset, signaling broader market confidence. Investors use this metric to time entries, especially as gold’s rally has pressured the ratio since August, but Bitcoin’s volatility could reverse this trend with renewed liquidity.
Key Takeaways
- Immediate Action on Dips: Allocate 25% of your Bitcoin investment now to seize what may be the last major dip below $100,000, per Standard Chartered guidance.
- Threshold-Based Scaling: Monitor Friday’s close for a potential 25% addition if above $103,000, ensuring buys align with momentum shifts.
- Ratio-Driven Final Buy: Hold the remaining 50% until the Bitcoin-gold ratio surpasses 30, offering insight into relative asset strength and recovery signals.
Conclusion
In summary, the three-stage strategy to buy the Bitcoin dip provides a structured approach for traders navigating U.S. shutdown-induced volatility, emphasizing phased investments tied to price levels and the Bitcoin-gold ratio. As institutional liquidity rebounds post-shutdown, Bitcoin could leverage its historical patterns for substantial gains. Investors are encouraged to assess their risk tolerance and consult financial advisors to implement this method effectively, staying ahead in the evolving crypto landscape.
