The recent drop in Bitcoin’s price is primarily due to broader issues in the risk asset market, rather than specific cryptocurrency factors. This was stated by Jeff Kendrick, the head researcher of digital assets at Standard Chartered. He emphasized that Bitcoin’s price is closely correlated with the dynamics of other risk assets, including stocks of major tech companies.
Kendrick pointed out that Bitcoin’s recovery will depend on two main factors: improving conditions for risk assets or positive news for Bitcoin, such as governments of the U.S. or other countries starting to purchase cryptocurrency.
Regarding the risk asset markets, Kendrick highlighted that clarity on tariff issues or a swift decision by the U.S. Federal Reserve to cut interest rates could trigger growth. “If during the May Federal Reserve meeting the likelihood of a rate cut rises to 75% from the current 50%, this could trigger a recovery,” he added.
However, Kendrick warned that further declines in Bitcoin could lead to a break below the support level of $76,500 and a fall below $69,000. Nevertheless, his target remains unchanged — Bitcoin is expected to reach $200,000 despite current fluctuations.
Earlier, Standard Chartered had predicted that Bitcoin’s price could soar to $500,000 before Donald Trump leaves office. Currently, Bitcoin is trading around $82,700.
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