Standard Chartered: 'Bitcoin has ample upside potential if Fed independence threats persist'

Bitcoin prices are likely to rise further if concerns about the independence of the US Federal Reserve (Fed) continue, an analysis has said.
According to The Block on the 22nd (local time), Standard Chartered Bank’s Global Head of Digital Asset Research
"Concerns that Fed Chairman Jerome Powell might be replaced are a reflection of the risks to the government sector," Jeffrey Kendrick said in an email.
"The term premium on the 10-year Treasury is currently at its highest in 12 years," Kendrick said.
"We are seeing a lot of uncertainty," he said, categorizing the situation as "government sector risk." This is a classic environment for Bitcoin, a decentralized hedge against the traditional financial system, he said.
He also analyzed that "the correlation between Bitcoin and the term premium of U.S. Treasury bonds has been evident since early 2024," and said, "In recent weeks, Bitcoin has been on the rise in this
"This does not adequately reflect the trend of rising premiums such as Bitcoin, which has recently been acting more like high-growth technology stocks and is more sensitive to macroeconomic issues like tariffs," he said.
However, he predicted that "if concerns about the Fed's independence continue, there is room for Bitcoin to resume its upward trend."
"If this trend continues, Bitcoin will continue to rise and this is the catalyst for it to reach new all-time highs," Kendrick said.
"This could be a trigger for the cryptocurrency," he added. Bitcoin is currently trading at around $91,200, up about 4% on a 24-hour basis.
Kendrick also said that Bitcoin will continue to be a magnet for the public when private or governmental risks to the financial system go unnoticed.
He explained that the company expects the stock to perform like a high-growth technology stock like Mag7. He also reaffirmed his existing price outlook for Bitcoin.
It expects the inn to reach $200,000 by the end of 2025 and $500,000 by the end of 2028.