Seems what you are looking for already exists in academic markdown editor zettlr which uses the citeproc-js library to enable the usage of bibtex files:
implementation in zettlr:
https://docs.zettlr.com/en/academic/citations/
citeproc-js library:
so building the plugin for which you offered the bounty would mainly consist of a zettlr-like implementation of citeproc-js in logseq …maybe an intresting project for @Aryan , who seems to be on a roll these days. Why not add this to the honors list? 