Bitcoin's Rebound Potential Highlighted by Standard Chartered Amid Market Volatility
1min read Standard Chartered, a prominent global financial institution, has expressed optimism regarding Bitcoin's potential rebound. Geoff Kendrick, the Global Head of Digital Assets Research at standard Chartered, believes that despite the recent dip in Bitcoin's value, the cryptocurrency is still performing relatively well compared to other assets. Kendrick noted that Bitcoin's movements on Sunday could indicate broader market trends, suggesting that if foreign exchange markets remain stable, Bitcoin could recover to its Friday close of $84,000.
Kendrick's analysis comes amidst heightened volatility in global markets, sparked by geopolitical tensions and proposed tariffs. He suggests that tariff fears may be overstated and that Bitcoin could emerge as a hedge against growing US isolationism and fiat risk. This view contrasts with comments from top economic advisers who have tried to calm markets by stating that the impact on consumers would be minimal.
However, crypto analyst nic Puckrin warns that while a V-shaped recovery is possible, it may be short-lived. Puckrin urges caution for new investors, highlighting the unpredictable nature of macroeconomic conditions. Both analysts agree that macro conditions will be the key force shaping crypto’s future, with Bitcoin's path to recovery under pressure from broader market uncertainties.
Adding to the caution, Jamie Dimon, CEO of jpmorgan chase, issued a stark warning in his annual letter to shareholders. Dimon highlighted deeper structural risks facing the global economy, including the need for increased expenditure on infrastructure, the restructuring of global supply chains, and military spending. He also addressed the impact of recent US trade policy shifts, stating that the tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.
Bitcoin pioneer Max Keiser, however, defends that the tariffs will enhance Bitcoin’s appeal as a hedge. Keiser believes that everything that can be liquidated and moved into Bitcoin will be, as global markets crash, making Bitcoin the least risky asset ever. This perspective underscores the growing interest in Bitcoin as a safe haven asset amidst economic uncertainties.
With the recent correction, Bitcoin Short-Term Holders NUPL (Net Unrealized Profit/Loss) reached its lowest level since August 2024. This indicates a significant shift in investor sentiment, with short-term holders experiencing substantial losses. Despite this, analysts see parallels to the 2020 crash and predict that the recent crypto dip, marked by Bitcoin falling below $80,000, could be followed by a short-term rebound.
In summary, while Standard Chartered sees potential for Bitcoin to rebound by Friday, the path ahead remains uncertain. Macro conditions, including geopolitical tensions and trade policy shifts, will continue to shape the future of crypto markets. Investors are advised to exercise caution and conduct thorough research before making any financial decisions. 
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