Standard Chartered: "Bitcoin's Downtrend Not Just a Crypto Market Issue... Interest Rate Cuts Essential for Recovery"

Amid the recent bearish trend in the cryptocurrency market, an argument has emerged that this downturn was triggered by significantly weakened investor sentiment toward risk assets overall.

According to crypto news outlet The Block on the 11th (local time), Jeff Kendrick, Head of Digital Asset Research at Standard Chartered Bank, stated, "I would argue that Bitcoin has maintained robust levels on a volatility-adjusted basis when compared to the Magnificent Seven." He added, "Tesla was the worst performer, Meta and Apple showed the highest levels, and the rest exhibited volatility similar to Bitcoin."

Along with this analysis, Jeff Kendrick explained that Bitcoin's decline over the past few days is not just an issue with the cryptocurrency market but a phenomenon resulting from deteriorating sentiment toward risk assets overall. He emphasized, "Bitcoin's recent downtrend is not due to direct causes related to Bitcoin itself, but rather occurred due to broader market sentiment," adding that "for Bitcoin prices to recover, news such as interest rate cuts by the Federal Reserve (Fed) will be necessary."

He particularly noted the importance of quickly resolving macroeconomic concerns related to tariffs. Jeff Kendrick said, "If the possibility of a rate cut at the May Federal Open Market Committee (FOMC) meeting increases, Bitcoin could rebound. However, if the downward trend continues, Bitcoin could fall as low as $69,000."

Nevertheless, he maintained a bullish long-term outlook. Jeff Kendrick stated, "My view that Bitcoin will reach $200,000 by 2025 remains unchanged. If this situation increases the likelihood of Fed rate cuts, this outlook will become even more certain."

Additionally, Jeff Kendrick mentioned that "news such as announcements of Bitcoin accumulation or stockpiling by the United States or other countries could serve as catalysts to help Bitcoin's price recovery."