Bitcoin on record high due to Fed concerns?

A current analysis by Standard Chartered says that Bitcoin (BTC), in the face of growing political concerns about the independence of the US Federal Reserve, reappears as a preferred protection against systemic risks.

This phase coincides with increasing concerns about the independence of the Fed and the stability of the American financial system. The repeated criticism of President Trump on Fed chairman Jerome Powell rose his demand for lower interest rates and even his proposal to relieve Powell before the end of his term of office in 2026.

The pressure on the financial markets led to sales in shares and currencies, while the US state bond returns climbed on a 12-year high. Experts warn that weakening the independence of the Fed would have far-reaching consequences, including a higher inflation, increasing long-term interest rates and falling confidence in the US dollar as a world reserve currency.

Standard Chartered Study sees Bitcoin as a technology proxy and systemic protection

The study emphasizes Bitcoins in a special role in the investment world, whereby it fulfills two objectives. In stable conditions, it moves in harmony with high -growing technology stocks.

In addition, it serves with political or economic uncertainty as security against private sector failure and against government risks.

According to Geoffrey Kendrick, the Global Head of Digital Assets Research from Standard Chartered and the author of the report, there is a strong correlation between Bitcoin (BTC) and the US Treasury Term Premium. This risk premium for government bonds has increased because the markets praise uncertainty about the future course of the Fed.

Although Bitcoin remains behind the increase of the term premium, he believes that persistent doubts about the independence of the Fed will probably drive the BTC price to new highs.

Optimistic forecasts despite uncertainties with the Fed

Standard Chartered remains at its year-end destination for $ 200,000 and underlines his optimistic forecast for Bitcoin, predictthat $ 500,000 will be achieved by the end of 2028. Other managers in the economy also match the bank. Jan van Eck, CEO von Vaneck, recently advised investors to increase their investments in Bitcoin and gold to protect themselves against inflation, financial uncertainties and global de-dollarization.

Since capital escape and increasing credit costs could threaten if the Fed's credibility is questioned, investors are looking for alternatives to traditional US assets. The decentralized nature of Bitcoin and its independence from state control increase its attraction for both institutional and private investors.

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