In a comprehensive analysis by Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, the recent fluctuations in Bitcoin’s price have been closely tied to movements within the US Treasury market and the impending monthly options expiry. Kendrick highlighted that the reduction in the US Treasury term premium has created an environment where Bitcoin’s role as a financial hedge is temporarily diminished. As confidence in US Treasuries grows, investors may gravitate towards these traditional assets, limiting Bitcoin’s appeal in the short run.
Kendrick emphasized the significance of Bitcoin’s utility as a safeguard against instability in financial markets, particularly in sectors influenced by government bonds. Despite this recent pullback, he holds a bullish outlook, projecting a year-end target of $125,000 for Bitcoin, with a forecast of reaching $200,000 by the close of 2025. Notably, he mentioned that expectations of price consolidation around $85,000 to $88,700 could act as a critical support level, given the purchase activity from institutional players, including spot Bitcoin ETFs and MicroStrategy.