According to Standard Chartered, Bitcoin may be on the verge of a breakthrough as favorable bond market conditions support risky assets.
The bank sees limited Treasury bond yields and a stable economy as key factors that could provide more gains for Bitcoin and the wider cryptocurrency market.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, stated in a note released today that the yield on 10-year US Treasury bonds remaining below 4.50% signals that the bond market does not expect an aggressive Federal Reserve tightening.
"The fact that 10-year U.S. Treasury bond yields have so far failed to rise above 4.50%, despite the strong details in today's U.S. jobs bulletin, is very constructive for digital assets," Kendrick said, adding: "Yields are not higher, but the economy is still doing well, a Goldilocks zone for digital assets."
This view is consistent with the views of 21Shares Crypto Research Strategist Matt Mena, indicating that falling bond yields and a weakening US dollar provide a favorable environment for risky assets, especially Bitcoin, which tends to thrive in easier monetary conditions.
Kendrick suggested that if the 10-year Treasury bond stays below 4.50% by the weekend, Bitcoin could move towards an important resistance level of $102,500. He also added that if there are no significant negative catalysts such as unexpected regulatory actions or macroeconomic shocks, Bitcoin could rise above its all-time high of $108,000 in February.
The latest US employment report for January presents a mixed picture, falling below expectations but showing resilience. According to the Bureau of Labor Statistics, the economy added 143,000 jobs, significantly below the expected 170,000 and well below the 307,000 in December. However, the unemployment rate unexpectedly dropped to 4%, and wage growth increased from 3.9% to 4.1%, indicating the continued strength of the labor market.
Mena from 21Shares stated that this combination could reduce the pressure to keep interest rates high on the FED and create a supportive environment for Bitcoin as investors position themselves for a possible interest rate cut later this year.
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Standard Chartered Reveals: Bitcoin Price Could Be on the Verge of a Serious Breakdown! "Unless Something Extraordinary Happens, BTC Price..."
According to Standard Chartered, Bitcoin may be on the verge of a breakthrough as favorable bond market conditions support risky assets.
The bank sees limited Treasury bond yields and a stable economy as key factors that could provide more gains for Bitcoin and the wider cryptocurrency market.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, stated in a note released today that the yield on 10-year US Treasury bonds remaining below 4.50% signals that the bond market does not expect an aggressive Federal Reserve tightening.
"The fact that 10-year U.S. Treasury bond yields have so far failed to rise above 4.50%, despite the strong details in today's U.S. jobs bulletin, is very constructive for digital assets," Kendrick said, adding: "Yields are not higher, but the economy is still doing well, a Goldilocks zone for digital assets."
This view is consistent with the views of 21Shares Crypto Research Strategist Matt Mena, indicating that falling bond yields and a weakening US dollar provide a favorable environment for risky assets, especially Bitcoin, which tends to thrive in easier monetary conditions.
Kendrick suggested that if the 10-year Treasury bond stays below 4.50% by the weekend, Bitcoin could move towards an important resistance level of $102,500. He also added that if there are no significant negative catalysts such as unexpected regulatory actions or macroeconomic shocks, Bitcoin could rise above its all-time high of $108,000 in February.
The latest US employment report for January presents a mixed picture, falling below expectations but showing resilience. According to the Bureau of Labor Statistics, the economy added 143,000 jobs, significantly below the expected 170,000 and well below the 307,000 in December. However, the unemployment rate unexpectedly dropped to 4%, and wage growth increased from 3.9% to 4.1%, indicating the continued strength of the labor market.
Mena from 21Shares stated that this combination could reduce the pressure to keep interest rates high on the FED and create a supportive environment for Bitcoin as investors position themselves for a possible interest rate cut later this year.