Bitcoin Mirrors Risk Asset Trends—Standard Chartered Explains Why
Standard Chartered suggests that Bitcoin’s volatility is a reaction to macroeconomic forces—and that a Federal Reserve policy adjustment could pave the way for a market rebound.
Bitcoin’s decline isn’t due to fundamental flaws in the crypto sector, but rather a reflection of investor sentiment toward risk assets. At the moment, Bitcoin’s price movements are following traditional markets.
Despite this, Standard Chartered maintains a bullish outlook, predicting Bitcoin will hit $200,000 by 2025 and soar to $500,000 by 2028.
I would argue that Bitcoin has traded solidly within this ‘Magnificent Seven plus Bitcoin’ group, on a volatility-adjusted basis. Tesla has traded the worst, and Meta and Apple the best. The rest are similar to Bitcoin, on a volatility-adjusted basis,
commented Geoff Kendrick, Standard Chartered's Head of Digital Assets Research.
Wider market fears, not crypto-specific issues, are fueling the ongoing decline, as investors shift their capital into less volatile assets—leaving Bitcoin and altcoins struggling to regain momentum.
According to Geoff Kendrick, the crypto market needs two key elements for a rebound:
- Stronger investor confidence.
- A fresh wave of bullish news for the industry.
Macroeconomic Pressures Could Shift Bitcoin’s Trajectory
Forget the charts—the real catalyst for Bitcoin’s next rally or crash isn’t technical, it’s macroeconomic.
The Federal Reserve’s March 19 meeting could be a game-changer, with analysts warning that even a steady interest rate won’t prevent volatility. What matters most? The Fed’s tone and future outlook.
Check this out: Metaplanet Strengthens Bitcoin Reserve with $13.5M Investment
The market is watching closely, and if the Fed refuses to cut rates, crypto could take a serious hit.
According to Rohit Jain, Bitcoin might struggle to hold $70K, and if that level breaks, Ethereum and Solana could follow suit, dragging the entire altcoin market down.
The Fed’s monetary policy decisions are just one piece of the puzzle. Broader macroeconomic trends, from commodity price shifts to international capital flows, can trigger market-wide shifts just as dramatically.
The U.S. government’s 25% tariff hikes on Mexico and Canada are amplifying market instability. Yet, according to Standard Chartered analysts, this trade tension could become a catalyst for the Federal Reserve to adopt a more accommodative monetary approach in the coming months.
Big Picture Thinking
Market downturns often pave the way for transformation, and this time is no different. While Bitcoin’s price dip may seem alarming, seasoned investors see it as a golden opportunity to buy at a discount. Kendrick remains bullish, arguing that current price swings only increase the likelihood of a major rally ahead.
Read on: Michael Saylor: Bitcoin’s Future Price Tag? $10 Million
Experts maintain a strong bullish outlook, anticipating that Federal Reserve easing and trade policy adjustments will alleviate investor concerns. While Bitcoin may momentarily dip below critical price levels, the broader trend suggests a resilient and upward trajectory.
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