Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, stated on November 27th that Bitcoin’s recent correction was influenced by various factors, such as changes in the U.S. Treasury market and upcoming monthly option expiration. The reduction in the Treasury term premium, which is the extra return investors require for holding long-term bonds compared to short-term bonds, has contributed to market instability, including Bitcoin’s decline and long-dated Treasuries rebounding.
Standard Chartered analysts argue that since Bitcoin is often viewed as a hedge against traditional financial market instability, increased confidence in U.S. Treasury bonds may reduce Bitcoin’s short-term appeal, causing its price to fall. However, Kendrick remains optimistic about Bitcoin’s long-term prospects, maintaining his year-end target of $125,000 and predicting further growth to $200,000 by the end of 2025.
Despite the correction, demand from institutional investors remains strong, with spot Bitcoin ETFs and MicroStrategy purchasing a significant number of Bitcoins. Kendrick suggests that Bitcoin may consolidate between $85,000 and $88,700 before resuming its upward trajectory.
Source
<p>The post Bitcoin Correction Linked to U.S. Treasury Market Changes, Says Standard Chartered Analyst first appeared on CoinBuzzFeed.</p>
