Standard Charterd: Bitcoin is enhancing its position as a hedge tool .. “safe haven”

The Standard Charterd group sees Bitcoin BTC is still standing at less than its actual value despite the escalation of the regular risks due to the uncertainty related to the federal reserve policies, expecting a prospective movement of the digital currency soon.

The head of research on encrypted currencies at Standard Charterd, Jeffrey Kendrick, believes that Bitcoin has not yet reflected the increasing indicators of the regular risks, although it recently strengthened its position as a hedge tool in the troubled markets.

The price of Bitcoin is trading at 94,124.25 dollars, up 6.25% during the past 24 hours, at the time of writing the report.

Kendrick warned that the pressure on the American Federal Reserve causes turmoil in the bond market, and its effects may extend to the cryptocurrency market soon.

He pointed to the increase in the expansion of American bonds for 10 years to its highest level in 12 years, in light of the growing fears of inflation, the increase in debt issues, and most importantly, the possibility of replacing the Federal Reserve Chairman Jerome Powell.

“The current threat to the independence of the American Federal Reserve is through the possibility of Powell replacing the risks associated with the government, and Bitcoin should start unlike this shift soon,” Kendrick said.

Kendrick classified Bitcoin as a hedge tool against two types of regular risks and pointed to the collapse of the private sector in the Silicon Valley Bank crisis in 2023, and eroded confidence in government institutions, such as interference in central banks ’policies or doubts about the debts of countries.

Although Bitcoin is still famous as a high -risk investment tool, Kindrik stressed that her actual role appears during the total economic turmoil.

The expert added that the last jump in the extended return reflects the escalation of fears of inflation and interest rates, which are conditions that usually enhance Bitcoin narrative as a financial flow.

Kendrick pointed to the recent contrast between the performance of the Bitcoin currency and the extended returns on the bonds, as it settled the price below 100,000 dollars despite the increase in the extended return.

This attributed the delay to the temporary focus of investors on commercial concerns, such as customs duties on the technology sector, which affected Bitcoin’s response.

“Bitcoin is late for the revenue due to the current market focus on the poor performance of the technology sector, but when attention returns to the credibility of the central banks, Bitcoin will resume its role as a hedge tool,” Kendrick said.

Despite short -term fluctuations, Kindrik repeated his confirmation of Standard Charterd’s expectations for the Bitcoin price, setting $ 200,000 by the end of 2025 and $ 500,000 by 2028.

He attributed these expectations to the total economic pressures, in addition to improving the opportunities for access to Bitcoin through the instant ETF funds, and the maturity of the financial derivative market.