As Bitcoin seeks recovery from its recent dip below the $100,000 mark, prominent analyst Geoff Kendrick from Standard Chartered is advising investors to adopt a staggered buying strategy. Kendrick suggests splitting investments into three increments: 25% of the maximum planned investment now, another 25% if Bitcoin closes above $103,000 on Friday, and the remaining 50% once the Bitcoin-gold ratio exceeds 30.
Currently, the Bitcoin-gold ratio has decreased significantly from a peak of 38.6, recorded on January 5, 2025, dropping to 25. Gold has shown robust performance this year, climbing 66.5%, while Bitcoin’s growth has been modest at 10.5%. This disparity has led to rising investor sentiment favoring gold, with estimates indicating an 82% chance that gold will outperform Bitcoin for the remainder of the year.
Recent market dynamics have contributed to this crypto weakness, with analysts attributing part of the downturn to the ongoing U.S. government shutdown, which is now the longest in history. This shutdown has restricted institutional liquidity, used typically for investments in equities, lending, and cryptocurrencies. Analysts from BitMEX anticipate that once the shutdown concludes and government spending resumes, institutions will have more cash available, leading to a swift recovery in the market.
They predict that this potential influx of liquidity could ignite a significant relief rally, aligning with Bitcoin’s historical pattern of strength at the year’s end. As investors navigate these turbulent waters, Kendrick’s strategy provides a structured approach to capitalizing on Bitcoin’s ongoing market movements while maintaining a cautious stance amid broader economic uncertainties.
