Geoff Kendrick, the global digital asset research director at Standard Chartered Bank, attributed the recent market turbulence (including the drop in Bitcoin and the rise in US long-term bonds) to the decline in the term premium of US Treasuries. The term premium is the extra yield that investors require for holding long-term bonds instead of rolling over short-term bonds. As Bitcoin is often seen as a hedge against instability in traditional financial markets, the increased confidence in US Treasuries may temporarily weaken Bitcoin's appeal, leading to a price drop. Kendrick stated, "There are no signs that MicroStrategy's purchases are slowing down, and they are unlikely to sell, but since the election, the average purchase price for the ETF and MSTR is $88,700, which may become a short-term bottom. Bitcoin may consolidate in the range of $85,000 to $88,700 before resuming its upward trajectory."

#BTC #ETF