Key Insights:
- Bitcoin price is predicted to rise to $200,000 by 2025.
- Growing concerns about the Federal Reserve’s independence boost Bitcoin.
- Bitcoin’s decentralized nature makes it a hedge against financial instability.
According to Standard Chartered, Bitcoin (BTC) price could skyrocket to a new all-time high. Analysts say the main reason for the price rise is that Bitcoin remains a safeguard against economic turmoil.
BTC price target for late 2025 is around $200,000. This suggested a strong growth potential and a chance to revisit previous highs.
Role of Bitcoin as a Hedge Amid Financial Concerns
Geoff Kendrick from Standard Chartered explained that Bitcoin is a protective measure against operational risks in financial institutions. According to Kendrick, BTC’s decentralized nature substantially appeals to users during financial instability.
Among his examples, he referenced increased Federal Reserve independence concerns triggered by recent presidential comments about firing the Fed’s chair. Public concerns have intensified the market volatility of traditional financial instruments, namely U.S. Treasury bonds.
BTC has benefited from this uncertainty as the 10-year U.S. Treasury yield premium hits a 12-year high. Kendrick noted that the rising yield premium aligns with the Bitcoin price trend.
This suggests growing interest in Bitcoin as an alternative investment. Concerns over central bank policies may be driving its popularity.
Strong Market Growth and a Bullish Outlook
Bitcoin traded at $91,590 on its 1-day trading chart at press time. The token displayed a bullish reversal pattern, a falling wedge. The market has had its highs and lows, but Bitcoin is showing strong resistance and remains on a positive trend.
With $200K by the end of 2025, it is clear that Bitcoin will rise by 125% from here. The forecast expects growing adoption of BTC among institutions.
It also assumes that the primary token can shield its supply from financial disruptions. Additionally, it suggests Bitcoin can resist government pressures on money provision.
BTC has reinforced its status as a safe-harbor asset. Its resilience during crises like the 2023 Silicon Valley Bank collapse has strengthened this reputation.
As the financial landscape remains uncertain, many investors turn to Bitcoin as a value store, driving demand.
Concerns Over the Federal Reserve’s Independence
One of the significant factors in Bitcoin’s growth is the uncertainty about the Federal Reserve’s autonomy. President Trump’s attempts to fire Jerome Powell have raised fears of undermining central bank independence.
This could raise further uncertainty about traditional financial systems. As a result, more investors might turn to alternatives like BTC.
Bitcoin initially lagged behind the price surge linked to the rising term premium. However, Kendrick expects it to surpass this trend as concerns about central bank independence grow.
Bitcoin maintains its upward price trajectory because it exists independently without central authority control or elimination capability.
Bitcoin Predictions Point to Major Growth
Kendrick’s prediction of Bitcoin’s long-term future is even more optimistic. He predicted that BTC could hit $500,000 by 2028 as its value is further hailed as a hedge against financial instability.
Standard Chartered’s earlier projections have been almost spot on. This includes their prediction that Bitcoin would reach $100,000 by the end of 2024, fed by institutional capital flows.
Bitcoin’s market cap stood at about $1.7 trillion. For it to enter mainstream financial assets, its price must climb to around $200,000. This pushed its market cap to nearly $3.8 trillion.
Bitcoin Breaks Key Downtrend, Now Testing $90K-$91.47K Resistance
Both technical indicators and fundamental factors point toward the strong upward momentum of Bitcoin. These trends suggest continued positive movement in its price.
Market analyst rektcapital provided a chart indicating Bitcoin’s successful breach of a crucial downtrend, which proves its bullish position. Price movement has proven to be a successful breakout, and BTC now tests resistance between $90,000 and $91,470.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
The post Standard Chartered Sees Bitcoin Surging Amid Fed Uncertainty appeared first on The Market Periodical.
