The recent dynamics of Bitcoin are closely related to the overall deterioration of risky assets, rather than issues specific to the cryptocurrency itself, said Jeff Kendrick, head of digital asset research at Standard Chartered (LON:STAN). This was reported by The Block portal.
"I would say that Bitcoin was confidently trading within the 'Magnificent Seven + BTC' group, adjusted for volatility," Kendrick said in an email on Tuesday. "Tesla performed the worst, while Meta * and Apple performed the best. The other companies show results similar to Bitcoin when accounting for volatility."
Kendrick added that the decline of Bitcoin is apparently due to overall market sentiment rather than 'local issues directly related to BTC.' He suggested that the recovery of the main digital coin will depend on two potential catalysts: a general recovery of risky assets or positive news for Bitcoin, such as sovereign purchases by the U.S. or other countries.
Regarding risky assets, Kendrick noted that a clarification of tariff policy or a swift start to interest rate cuts by the Fed is necessary for recovery.
"A quick transition to a rate cut by the Fed, when the probability of a rate cut at the May meeting will be 75% instead of 50%, could trigger a rebound," he explained.
On the bearish sentiment side, Kendrick warned that if the downward trend continues, breaking the level at $76,500 could quickly lead to testing the support at $69,000. However, he reaffirmed his long-term optimism, predicting that Bitcoin will reach $200,000 by the end of 2025.
"My target of $200,000 remains unchanged despite the short-term noise, which actually increases the likelihood of Fed rate cuts, reinforcing my confidence in the long-term scenario," Kendrick noted.#CryptocurrencyWealth #AltcoinETFsPostponed #UkraineRussiaCeasefire $BTC Adoption #BinanceAlphaAlert
