Bitcoin Correction Could Go As Deep As $88,700 But $125,000 Year-End Target Remains In Play, Says Standard Chartered
Bitcoin‘s (CRYPTO: BTC) sharp pullback from its record high just under $100,000 has sparked concern among traders, with Standard Chartered‘s Geoffrey Kendrick attributing the correction to several factors, including a reduction in U.S. Treasury term premium and upcoming options expirations.
What Happened: According to Kendrick, the significant reduction in U.S. Treasury term premium following President-elect Donald Trump‘s Treasury Secretary announcement triggered Bitcoin’s decline.
In a note sent to Benzinga, he explained that Bitcoin is often viewed as a hedge against traditional financial issues, and lower term premiums undermine its appeal in this role.
Data from the New York Fed, which tracks term premium movements, supports the connection between recent Treasury market activity and the crypto market’s performance.
“Bitcoin thrives on uncertainty in traditional finance. When Treasury term premiums drop, that hedge utility temporarily diminishes,” Kendrick noted.
Further adding …
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