BTC fell to 91K, Standard Chartered: 85K is support, year-end target price remains 125K

The situation in the Middle East is easing, and Israel and Lebanon have agreed to reach a permanent ceasefire protocol. The minutes of the Federal Reserve meeting show that the United States will maintain a gradual interest rate reduction trend. The main U.S. stock indexes closed higher on Tuesday (11/26), with both the Dow and the S&P hitting record highs. Crypto Assets, on the other hand, experienced a comprehensive decline, with Bitcoin falling back to 91K and Ethercoin retracing above $3,300.

The Federal Reserve will maintain a gradual rate cut.

The minutes of the Federal Reserve meeting show that there is still a long way to go before the rate cut pause, as Fed officials indicate that they generally support taking a cautious approach to future rate cuts as the economy remains healthy and inflation cools slowly.

According to the minutes of the FOMC meeting that ended on November 7, "participants expect that if the data meets expectations, inflation continues to decline to 2%, and the economy remains close to maximum employment, it may be appropriate to gradually shift to a more neutral policy stance over time."

The CME FedWatch Index shows that 63.2% of traders expect the Fed to continue cutting rates by one notch at the December meeting, compared to 52.3% the previous day rise.

Standard Chartered: BTC may pullback to 85K, year-end target price 125K

BTC failed to challenge the six-digit mark last week and saw a significant pullback this week. Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank, pointed out factors driving the pullback, including changes in the US Treasury market and the upcoming monthly options expiration.

Kendrick stated that since BTC is often seen as a hedging tool against the instability of traditional financial markets, the increase in confidence in US Treasury bonds may weaken the attractiveness of BTC in the short term and lead to a price decline.

Another factor that will affect the price of BTC in the short term is the monthly options expiring this Friday for the asset. Kendrick pointed out that Deribit's data shows there are 18,000 BTC futures contracts that have not been closed, with strike prices ranging from $85,000 to $100,000, which may limit price fluctuations before expiration.

However, institutional demand for BTC remains strong. Kendrick pointed out that since the beginning of this month's U.S. election, BTCSpot ETF has accumulated approximately 77,000 BTC, and MicroStrategy has additionally purchased 134,000 BTC.

MicroStrategy's purchases show no sign of slowing down, and it's unlikely to sell. However, since the election, the average purchase price of ETF and MicroStrategy is $88,700, which may be a short-term support. BTC may consolidate between $85,000 and $88,700, then resume its upward trajectory.

He remains optimistic about the long-term prospects of Bitcoin. Kendrick reiterated his year-end target of $125,000 for BTC and expects it to further rise to $200,000 by the end of 2025.

This article BTC fell to 91K, Standard Chartered: 85K is support, the year-end target price is still 125K, first appeared in ChainNews ABMedia.