Written by: Mat Di Salvo, Liz Napolitano
Translated by: AI, Centreless
Bitcoin's price once approached six figures, but after swiftly nearing the $100,000 mark last week, it is now trading below $94,000 per Bitcoin.
And according to the British multinational bank Standard Chartered, Bitcoin still has room for further decline.
The company's digital asset researcher, Geoff Kendrick, wrote on Tuesday that there will be more bumps ahead, predicting BTC will drop to a low of $88,700. What is the reason?
He wrote: "I think the catalyst for yesterday's (Bitcoin price drop) was the reduction in the term premium of U.S. Treasuries after Bessent (was appointed Secretary of the Treasury)." After Donald Trump nominated Scott Bessent as U.S. Treasury Secretary, U.S. Treasury prices rose, and yields on Treasuries with terms from 5 to 30 years dropped by more than 10 basis points.
Kendrick added that in the short term, the momentum of Bitcoin's rise may slow down because "one of Bitcoin's core uses is to hedge against (traditional financial) issues (related to the banking sector or the Treasury)."
Hedge fund manager Bessent is viewed on Wall Street as a fiscal conservative, which may imply more prudent monetary policy—especially regarding tariffs. Donald Trump has promised to adopt aggressive tariff policies, taxing imported goods. Economists say that since tariffs often exacerbate inflation, U.S. Treasuries have seen a pullback.
But many market analysts expect Bessent to tame Trump's policies, leading to a rebound in Treasury prices.
By market capitalization, the largest digital assets are often seen as a hedge against poor government monetary policies and inflation. But with U.S. Treasury prices rising, investors—at least for now—are satisfied with what they see in traditional financial markets.
On November 5, after Donald Trump's shocking election victory, Bitcoin began to surge, reaching an all-time high of $99,645 last week. This starkly contrasts with the situation on the election night when Bitcoin was trading below $70,000, while Trump’s victory was still uncertain.
The former Republican president won the popular vote and swept all the swing states. Now, investors are optimistic: this real estate mogul has promised to ease regulations, cut taxes, and support the digital asset industry.
However, Bitcoin failed to break through the $100,000 barrier, and this week it fell sharply.
However, Kendrick added that in the long run, it will continue to rise. He predicts that by the end of this year, Bitcoin will reach $125,000 each, and the target of $200,000 by the end of 2025 is still very likely to be achieved.
Dan Morehead, CEO of Pantera Capital Management, predicts that Bitcoin's price could reach $700,000 by 2028, as institutional investors, regulators, and lawmakers become more accepting of digital assets, potentially causing Bitcoin's price to soar.
"Based on historical trends, with the election of pro-cryptocurrency President Donald Trump and the presence of a pro-digital asset majority in the U.S. Congress, Bitcoin's price could reach $740,000 by April 2028."
Morehead believes that currently only 5% of financial wealth is invested in blockchain-related assets, indicating significant growth potential for Bitcoin's price.
"Even after 11 years, Bitcoin continues to push up like a watermelon seed," Morehead wrote. "The regulatory headwinds that blockchain has faced over the past 15 years are now turning into tailwinds."
This executive's optimistic prediction comes with good news for hedge funds: the Bitcoin fund launched by Pantera Capital in July 2013 has returned over 131,000% in the past 11 years (excluding fees and expenses).
These massive returns are due to the value of Bitcoin held by the hedge fund increasing more than 1,000 times since it was first purchased for $74 each over a decade ago.
According to data from CoinGecko, as of the time of writing, BTC is trading at around $96,300.
Despite Bitcoin’s remarkable growth, Morehead believes it is still "early days" for this leading cryptocurrency, with plenty of room for further growth.
