Bitcoin (BTC) appears poised for a major breakout as growing concerns over Federal Reserve independence could catalyze a surge to new all-time highs, according to Standard Chartered’s latest analysis. The leading cryptocurrency recently crossed $90,000 amid mounting uncertainty over potential changes at the Fed.
As previously reported, Bitcoin’s price action has shown increased sensitivity to developments surrounding Federal Reserve policy and leadership. The latest surge comes as former President Trump explores options to potentially remove Fed Chair Jerome Powell before his term expires in 2026.
Standard Chartered’s Bullish Bitcoin Outlook
Standard Chartered’s Head of Digital Assets, Geoff Kendrick, highlighted several key factors supporting their bullish $200,000 Bitcoin price target for 2025:
- Growing concerns over Fed independence creating macro uncertainty
- Rising yield premiums on long-dated Treasuries versus short-term bonds
- Bitcoin’s role as a hedge against traditional financial system risks
- Increased institutional adoption through spot ETFs
Technical Indicators Support Bullish Case
Multiple technical indicators align with Standard Chartered’s positive outlook:
- TD Sequential showing buy signal on weekly timeframe
- Bitcoin whales continuing steady accumulation
- Network hashrate reaching new all-time highs
- Growing institutional inflows through ETF products
Market Impact of Fed Independence Concerns
The potential threat to Fed independence has several important implications for Bitcoin:
| Factor | Impact on Bitcoin |
|---|---|
| Political Pressure on Fed | Increased demand for non-sovereign assets |
| Interest Rate Uncertainty | Greater appeal as inflation hedge |
| Market Volatility | Flight to alternative stores of value |
Frequently Asked Questions
Why could Fed independence concerns boost Bitcoin?
Political interference with central bank policy typically increases demand for assets outside traditional financial systems.
What’s the timeline for Standard Chartered’s $200K prediction?
The bank targets this price level by the end of 2025, citing multiple catalysts including institutional adoption and macro factors.
How does Bitcoin compare to gold in this scenario?
Bitcoin increasingly shows characteristics of a digital gold alternative, potentially benefiting from similar safe-haven flows during periods of monetary uncertainty.
At press time, Bitcoin trades at $90,957, representing a 3.3% gain over the past 24 hours. The cryptocurrency’s current all-time high stands at $108,786, recorded in January 2025.