Standard Chartered Predicts Bitcoin to Reach $88,500 Amid Tech Sector Trends

Standard Chartered has predicted that Bitcoin may reach $88,500 this weekend, citing the performance of the tech sector as a key indicator. The bank's analysis suggests that a strong US Non-Farm Payrolls report could boost Bitcoin’s price, while a disappointing report may drive investors to Bitcoin as a hedge against economic uncertainty.

According to Standard Chartered, Bitcoin’s role as a hedge in uncertain times is growing. The bank advises investors to “HODL” Bitcoin amid geopolitical and macroeconomic concerns. This advice comes as the bank forecasts Bitcoin’s potential to surpass $88,500 amidst tech sector trends and macroeconomic indicators.

Standard Chartered’s Kendrick pointed to recent price action among major technology stocks, including Microsoft, as an indicator of Bitcoin’s short-term trajectory. He explained that a decisive break above the critical $85,000 level appears likely post-US non-farm payrolls. Such an outcome would pave the way for a return to Wednesday’s pre-tariff level of $88,500. However, China’s retaliatory tariffs could increase market uncertainty, driving prices down in the short term. This volatility might dampen investor confidence, overshadowing any weekend gains.

Kendrick’s assertions come ahead of the much-anticipated US employment report, Non-Farm Payrolls (NFP). The report is expected to provide comprehensive updates on the labor market, encompassing jobs added, the unemployment rate, and wage growth. A robust report could bolster confidence in the economy, especially if it exceeds the previous reading of 151,000 jobs. This is compounded if accompanied by a steady 4.1% unemployment rate. Such an outcome could limit crypto gains if the dollar strengthens.

Conversely, a disappointing tally, particularly one falling below the median forecast of 140,000 jobs with unemployment rising beyond 4.1%, could ignite recession fears. This scenario may compel investors to seek refuge in Bitcoin and other cryptocurrencies. Standard Chartered appears to lean towards the latter outcome, with Kendrick emphasizing Bitcoin’s rising significance as an investment.

Standard Chartered increasingly stresses Bitcoin’s strategic role within financial markets. The bank recently identified Bitcoin and Avalanche (AVAX) as potential beneficiaries of a post-Liberation Day crypto surge. This forecast aligns with the current one, which indicates institutional investors may be preparing for a market upswing. Furthermore, the bank emphasizes Bitcoin as a growing hedge against inflation, asserting that its limited supply and decentralized nature position it as an attractive substitute for traditional safe-haven assets.

In light of Bitcoin’s strengthening role in traditional finance (TradFi), Kendrick advised investors to retain their holdings. This suggests that Bitcoin could serve as a protective asset amid geopolitical and macroeconomic uncertainties. Meanwhile, the BTC/USDT daily chart reveals a critical technical setup, with Bitcoin’s price currently around $82,643. The former support level of $85,000 now acts as resistance, limiting the pioneer cryptocurrency’s upward potential. The supply zone near $86,508 imposes additional selling pressure.

On the downside, a critical demand zone between $77,500 and $80,708 provides support. Despite price consolidation, the Relative Strength Index (RSI) is forming higher lows, indicating sustained momentum and a potential price reversal. If BTC successfully reclaims $85,000, it could encourage a move towards $87,480. However, to validate the continuation of the uptrend, BTC needs to achieve a daily candlestick close above the midline of the supply zone at $86,508. The bullish volume profile supports this hypothesis, indicating that bulls are prepared to engage with the Bitcoin price above the midline of the supply zone.

Failure to breach the immediate resistance at $85,000 could lead to a retest of the demand zone, with the potential to break lower. In this directional bias, a break and close below the midline of this zone at $79,186 could exacerbate the downtrend. Standard Chartered’s latest insights reinforce Bitcoin’s evolving role in a fluctuating economic landscape. Investors are navigating through pivotal financial indicators, and the strategic call to “HODL” reflects growing confidence in Bitcoin as a hedge and an asset class likely to benefit from technological advancements and market dynamics.