- Macroeconomic data indicates stability in the American economy.
- The US Federal Reserve will conclude the “era of expensive money” by June.
- Technical analyst Michaël van de Poppe anticipates a market capitalisation recovery post-correction.
Experts at Standard Chartered believe the current market situation creates favourable conditions for Bitcoin and the digital asset sector as a whole; moderate bond yields and a stable economy are key factors. This was reported by The Block.
Jeffrey Kendrick, head of digital asset research, noted that the yield on 10-year US Treasury bonds remains below 4.5%. This suggests that the bond market dismisses the likelihood of a policy tightening by the Fed. In turn, this supports risk assets.
“The fact that the yield on 10-year US Treasury bonds has not yet returned above 4.5%, despite strong US employment data, is a positive signal for digital assets,” Kendrick emphasised. “A situation where yields do not rise and the economy remains in good shape is an ideal scenario for cryptocurrencies.”
Matt Mena, a researcher at 21Shares, shares a similar view. According to him, declining bond yields and a weakening dollar create a favourable backdrop for risk assets like Bitcoin, which benefits from a softer monetary policy.
Is Bitcoin Aiming for a New ATH?
Kendrick added that if the yield on 10-year Treasury bonds remains below 4.5% by the end of the week, Bitcoin could break through the key resistance level of $102,500.
“If no new negative catalysts such as unexpected regulatory actions or macroeconomic shocks arise, we could see improved conditions for digital assets. This opens up the possibility of surpassing the historical maximum above $108,000 in February,” the expert stated.
The January labour market report in the US was somewhat disappointing but did not alarm market participants. According to the Bureau of Labor Statistics, 143,000 jobs were created in the American economy last month, below analysts’ forecast of 170,000 and significantly less than December’s 307,000.
However, the unemployment rate unexpectedly fell from 4.1% to 4%, wage growth accelerated from 3.9% to 4.1%, and the labour force participation rate rose to 62.6%. All this indicates the resilience of the labour market.
The End of the Era of Expensive Money?
Matt Mena from 21Shares also saw optimistic signals in the macroeconomic data.
“A slowdown in business activity while maintaining labour market stability reduces the need to keep high rates,” the expert noted. “This creates preconditions for Bitcoin’s growth as investors prepare for a possible rate cut this year.”
According to the latest Fed report, the agency will wind down its “expensive money” policy by June.
What About Technical Analysis?
Bitcoin is “in a place of boredom,” says MN Capital founder Michaël van de Poppe.
#Bitcoin is currently in a place of boredom.
Drop to lower bound = entry
Test the highs again = likely new ATH on the horizonIt’s not that hard. pic.twitter.com/awnav8vs7o
— Michaël van de Poppe (@CryptoMichNL) February 8, 2025
However, a price drop to the range of ~$89,600-91,600 is “the ideal entry zone.” Testing resistance levels around $104,000 is “a likely hint at a new all-time high.”
The total market capitalisation has held an important support level, the expert is confident.
The total market capitalization for #Crypto has held the crucial level for support.
Very likely that, given the current wick, the next candles are going to be green. pic.twitter.com/AIcPOk2xlp
— Michaël van de Poppe (@CryptoMichNL) February 8, 2025
“Judging by the current ‘wick’, there is a high likelihood that the next candles will be green,” van de Poppe noted.
Back in April, experts at Standard Chartered suggested that by 2028, the first cryptocurrency could reach $500,000. The growth drivers will be the mass adoption of the asset among investors and reduced volatility.