The price of Bitcoin once approached six figures, but after rapidly approaching the $100,000 mark last week, the current trading price of each Bitcoin is now below $94,000.
According to British multinational bank Standard Chartered, Bitcoin still has room for further decline.
Geoff Kendrick, the company's digital asset researcher, wrote on Tuesday that there will be more turbulence ahead, and BTC will fall to a low of $88,700. What is the reason?
He wrote: "I think the catalyst for yesterday's (Bitcoin price drop) was the reduction in the term premium on US Treasuries after Bessent (appointed as Treasury Secretary) was announced." After Donald Trump nominated Scott Bessent as US Treasury Secretary, US Treasuries rose, with yields on 5-year to 30-year Treasuries falling by more than 10 basis points.
Kendrick added that in the short term, the upward momentum of Bitcoin may slow down, because "one of Bitcoin's core uses is to hedge (traditional financial) issues (related to the banking sector or the Treasury Department)."
Hedge fund manager Bessent is seen on Wall Street as a fiscal conservative, which could mean a more prudent monetary policy - especially on tariffs. Donald Trump had promised to pursue a radical tariff policy, imposing taxes on imported goods. Economists say that since tariffs often lead to increased inflation, US Treasuries have seen a pullback.
But many market analysts expect Bessent to tame Trump's policies, leading to a rebound in Treasuries.
Calculated by market capitalization, the largest digital asset is often seen as a tool to hedge against poor government monetary policy and inflation. But with the rise in US Treasuries, investors - at least for now - are satisfied with what they see in the traditional financial markets.
After Donald Trump's shocking election victory on November 5, Bitcoin began to soar, hitting a record high of $99,645 last week. This contrasts sharply with the situation on election night, when Bitcoin was trading below $70,000 as Trump's victory was still unclear.
The former Republican president won the popular vote and swept all the swing states. Now, investors are optimistic: the real estate tycoon has promised deregulation, tax cuts, and to help the digital asset industry.
However, Bitcoin failed to break the $100,000 mark, and has even plummeted rapidly this week.
However, Kendrick added that in the long run, it will continue to rise. He predicts that by the end of this year, Bitcoin will reach $125,000 per coin, and the target of $200,000 by the end of 2025 is still very likely to be achieved.
Pantera Capital Management CEO Dan Morehead predicts that Bitcoin's price could reach $700,000 by 2028, as institutional investors, regulators and legislators become more accepting of digital assets, Bitcoin's price could soar.
"Based on historical trends, due to the existence of the elected president Donald Trump who supports cryptocurrencies and the pro-digital asset majority in the US Congress, Bitcoin's price could reach $740,000 in April 2028."
Morehead believes that currently only 5% of financial wealth is invested in blockchain-related assets, which means that Bitcoin has a lot of room for growth.
"Even after 11 years, Bitcoin is still growing like a watermelon seed," Morehead wrote. "The regulatory headwinds facing blockchain over the past 15 years are now turning into tailwinds."
The executive's optimistic forecast is accompanied by good news from the hedge fund: Pantera Capital's Bitcoin fund, launched in July 2013, has generated a return of over 131,000% in the past 11 years (excluding fees and expenses).
These huge returns are due to the fact that the value of the Bitcoin held by the hedge fund has increased more than 1,000 times since it was first purchased at $74 per coin over a decade ago.
According to CoinGecko data, as of the time of writing, the BTC trading price is around $96,300.
Although Bitcoin has already achieved amazing growth, Morehead believes that for this leading cryptocurrency, it is "still in the early stages" and there is still a lot of room for growth.
