Bitcoin could be heading back to $88,500 as early as this weekend from its current price of around $83,100, according to Standard Chartered.
Standard Chartered say
As the broader traditional finance market selloff continues, driven by U.S. President Donald Trump’s tariffs, bitcoin has shown strength and can now be viewed as a “U.S. isolation” hedge, according to Geoffrey Kendrick, global head of digital assets research at Standard Chartered.
“I [previously] argued that bitcoin trades more like tech stocks than it does gold most of the time. At other times, and structurally, bitcoin is useful as a TradFi [traditional finance] hedge (e.g., March 2023 SVB [Silicon Valley Bank] collapse). Over the last 36 hours, I think we can also add ‘U.S. isolation’ hedge to the list of bitcoin uses,” Kendrick wrote in an email to The Block on Friday.
By calling bitcoin a “U.S. isolation” hedge, Kendrick is likely suggesting that the cryptocurrency could gain value in scenarios where the U.S. appears increasingly isolated from the global economy, such as recent moves to impose tariffs.
Last week, Kendrick argued that bitcoin trades more like a tech stock than gold. At the time, he also introduced a hypothetical Mag7 index called Mag7B, which swapped Tesla for bitcoin. He said this revised basket delivered higher returns and lower volatility than the original lineup of seven mega-cap tech stocks.
In today’s note, Kendrick said that over the last 36 hours, as TradFi markets bled and Mag7 stocks tumbled, bitcoin and ether showed relative strength.
“Strongest performers were MSFT [Microsoft] and BTC,” he said. “Same again so far today in BTC spot and tech futures.”
Thursday’s price action across the Mag7 index + bitcoin and ether
Source: Standard Chartered
The above chart shows that while big tech stocks like Apple and Meta dropped nearly 9% on Thursday, bitcoin and Microsoft held up better than the rest.
“Bitcoin is proving itself to be the best of tech (upside when stocks go up) and a hedge in multiple scenarios,” Kendrick said. “A break back above the critical $85,000 level looks likely today, post payrolls. That opens up a move back to the $88,500 pre-tariff level from Wednesday (likely this weekend).”
Kendrick’s note comes amid growing investor anxiety over renewed tariff risks and fears of a U.S. recession. Amid the chaos, Kendrick’s closing recommendation is simple: “HODL.”
What is Standard Chartered?
Standard Chartered is a British multinational banking and financial services company headquartered in London. It operates a network of branches and offices across various countries, primarily focusing on Asia, Africa, and the Middle East. The bank provides a wide range of financial products and services, including personal and corporate banking, wealth management, investment banking, and treasury services.
Founded in 1969 through the merger of two banks, Standard Bank of British South Africa and Chartered Bank of India, Australia, and China, it has built a strong presence in emerging markets and is known for its commitment to sustainability and social responsibility. Standard Chartered is also recognized for its efforts in digital banking and innovation in financial services.
Reference : Crypto Whale Data
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