3 weeks ago
Standard Chartered caput of integer assets probe Geoffrey Kendrick believes Bitcoin’s (BTC) caller terms enactment suggests that the flagship crypto whitethorn necessitate sovereign accumulation oregon improved geopolitical clarity to propulsion higher amid the existent risk-off marketplace sentiment.
In a March 11 probe enactment shared with CryptoSlate, Kendrick highlighted that Bitcoin’s clang this week has brought terms levels adjacent to its trading scope connected Nov. 6, 2024, the time aft the US statesmanlike election.
BTC deed a four-month debased of $76,500 connected March 10 earlier attempting a betterment supra $80,000, portion its 30-day implied volatility hovered astir 55%.
Kendrick noted that Bitcoin has fallen successful tandem with large US tech stocks arsenic hazard assets proceed to conflict against rising macroeconomic concerns,
Kendrick compared Bitcoin’s caller show to that of the alleged “Magnificent 7” tech stocks, which see Apple, Microsoft, Nvidia, Alphabet, Meta, Tesla, and Amazon. These stocks person besides seen sell-offs amid marketplace uncertainty.
Since the inauguration of the existent US administration, Bitcoin has tracked these stocks connected a volatility-adjusted basis, reinforcing the statement that broader hazard plus sentiment is simply a cardinal operator of terms movements.
Tesla, Meta, and Apple person been the closest equity counterparts to Bitcoin successful presumption of adjusted performance, helium noted. The information suggests that Bitcoin’s terms enactment is much reflective of wide risk-off sentiment alternatively than asset-specific challenges.
Kendrick noted that Bitcoin continues to look further downside hazard successful the abbreviated word owed to macro uncertainties and needs a large catalyst to resume its uptrend.
He wrote:
“The question present is which comes first: a betterment successful hazard assets oregon affirmative Bitcoin-specific news, specified arsenic sovereign buying from the US oregon different nations.”
The imaginable of Federal Reserve complaint cuts remains crucial. A faster-than-expected displacement successful policy, perchance astatine the Fed’s May meeting, could stabilize hazard markets. Current marketplace expectations for a May complaint chopped person risen from 50% to 75%, expanding the likelihood of a argumentation displacement that could payment Bitcoin.
In the adjacent term, Kendrick said Bitcoin could autumn beneath the Nov. 6 terms range, indicating the imaginable for further downside. However, helium reaffirmed his semipermanent bullish stance, maintaining his erstwhile people of $200,000 by 2025 and $250,000 by 2026.
He argued that caller volatility reinforces the lawsuit for aboriginal Fed complaint cuts, which could service arsenic a tailwind for Bitcoin.
Kendrick advised investors to “stay nimble” and reaffirmed his broader thesis that Bitcoin’s semipermanent trajectory remains intact contempt enar-term turbulence.
The station Bitcoin needs sovereign buying oregon macro clarity to extremity risk-off sentiment for breakout – StanChart appeared archetypal connected CryptoSlate.
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