Geoff Kendrick, director of Global Digital Asset Research at Standard Chartered Bank, attributes the recent market volatility (including the decline of Bitcoin and the pump of long-term US Treasury bonds) to the decrease in the term premium of US Treasury bonds. The term premium is the additional yield required by investors holding long-term bonds instead of rolling over short-term bonds. As Bitcoin is often seen as a hedge against instability in the traditional financial market, the strengthening of confidence in US Treasury bonds may weaken the attractiveness of Bitcoin in the short term, leading to a price decline. Kendrick said, ‘There is no sign of slowing down in MicroStrategy’s purchases, and they are unlikely to sell. However, since the election, the average purchase price of ETFs and MSTR has been $88,700, which may become a short-term bottom. Bitcoin may consolidate in the range of $85,000 to $88,700 and then resume its upward trajectory.’
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Analista de Standard Chartered: El fondo a corto plazo de BTC está en el rango de 85,000 a 88,700 dólares
Geoff Kendrick, director of Global Digital Asset Research at Standard Chartered Bank, attributes the recent market volatility (including the decline of Bitcoin and the pump of long-term US Treasury bonds) to the decrease in the term premium of US Treasury bonds. The term premium is the additional yield required by investors holding long-term bonds instead of rolling over short-term bonds. As Bitcoin is often seen as a hedge against instability in the traditional financial market, the strengthening of confidence in US Treasury bonds may weaken the attractiveness of Bitcoin in the short term, leading to a price decline. Kendrick said, ‘There is no sign of slowing down in MicroStrategy’s purchases, and they are unlikely to sell. However, since the election, the average purchase price of ETFs and MSTR has been $88,700, which may become a short-term bottom. Bitcoin may consolidate in the range of $85,000 to $88,700 and then resume its upward trajectory.’