Bitcoin Price Expected to Decline Before Reaching $100,000 According to Standard Chartered
Bitcoin’s price has dropped below $94,000 after nearing $100,000, with predictions of further decline to approximately $88,700. This decrease is attributed to new Treasury secretary Scott Bessent’s impact on Treasury yields, affecting Bitcoin’s appeal as a hedge against traditional finance issues. Despite short-term challenges, Standard Chartered forecasts potential long-term gains for Bitcoin, predicting $125,000 by year-end and $200,000 by 2025.
The price of Bitcoin had approached the crucial $100,000 threshold, recently trading below $94,000 after a significant decline. According to Standard Chartered, further decreases are anticipated, with projections suggesting Bitcoin could fall to as low as $88,700. Geoff Kendrick, the bank’s digital assets researcher, attributed this downturn to recent developments regarding U.S. Treasury policies following the announcement of Scott Bessent as Treasury secretary, which led to a decrease in Treasury yields. The consensus is that Bitcoin’s appeal as a hedge against traditional financial instability may wane in the short term due to a strengthening U.S. Treasury market. Nevertheless, Kendrick remains optimistic for long-term price growth, foreseeing Bitcoin reaching $125,000 by year-end and potentially $200,000 by the end of 2025.
The discussion surrounding Bitcoin’s fluctuating price often intersects with broader economic indicators, such as U.S. Treasury yields. The selection of Scott Bessent as Treasury secretary has led to speculation about his potential impact on monetary policy. Bessent’s reputation as a fiscal conservative suggests that there could be more prudent economic management under his leadership, which in turn affects investor sentiment towards assets like Bitcoin that are often viewed as hedges against inflation and poor government policies. The cryptocurrency had recently seen a significant price surge following the election of Donald Trump, showcasing a strong correlation between political change and Bitcoin’s performance in financial markets.
In conclusion, while Bitcoin faces short-term volatility and the potential for further price declines, particularly due to strengthening Treasury yields linked to recent political appointments, the long-term outlook remains positive. Analysts at Standard Chartered foresee significant growth in Bitcoin’s price, projecting targets of $125,000 within the year and $200,000 within two years, underscoring the ongoing interest in and viability of digital assets despite current market fluctuations.
Original Source: decrypt.co
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