On November 27th, Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, stated that Bitcoin’s recent correction was influenced by various factors such as changes in the U.S. Treasury market and the upcoming monthly option expiration. Kendrick believes that the reduction in the Treasury term premium, which is the extra return investors need to hold a long-term bond compared to a short-term bond, has caused the market turmoil, including Bitcoin’s decline and the rebound in long-dated Treasuries.
Standard Chartered analysts suggest that since Bitcoin is often seen as a hedge against traditional financial market instability, increased confidence in U.S. Treasury bonds may reduce Bitcoin’s appeal in the short term, causing its price to fall. Kendrick remains optimistic about Bitcoin’s long-term prospects, reiterating his year-end target of $125,000 and predicting further growth to $200,000 by the end of 2025.
He noted that there are 18,000 Bitcoins in open interest in options with strike prices between $85,000 and $100,000, which could limit price swings before options expire. Despite the correction, Kendrick believes that institutional investor demand for Bitcoin remains strong, as evidenced by the recent purchase of approximately 77,000 Bitcoins by spot Bitcoin ETFs and an additional 134,000 Bitcoins by MicroStrategy.
He suggests that this may act as a short-term support level, with Bitcoin potentially consolidating between $85,000 and $88,700 before resuming its upward trajectory.
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