BTC once fell below 91,000! Standard Chartered: This level is support, still expected to hit 125,000 by the end of the year

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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 cut pattern. The main U.S. stock indexes closed higher on Tuesday (11/26), with both the Dow and the S&P hitting new all-time highs. Cryptocurrency, on the other hand, fell across the board, with BTC falling to 91K (encryption City Note: falling to a low of 90,791 US dollars at one point), and Ethercoin falling back above 3,300 US dollars.

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The Federal Reserve will maintain a gradual interest rate cut.

The minutes of the Federal Reserve meeting show that there is still a long way to go before the rate cut pause. Federal Reserve officials said that with the economy remaining robust and inflation cooling slowly, they generally support a cautious approach to future rate cuts.

According to the minutes of the Federal Open Market Committee meeting ending on November 7, "Participants expected that if the data were consistent with their forecasts, inflation would continue to decline to 2 percent, and the economy would remain close to its maximum employment level, then it might be appropriate to move gradually toward a more neutral policy stance over time."

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

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

BTC failed to challenge the $100,000 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 government bonds may weaken the attractiveness of BTC in the short term, leading to a decline in its price.

Another factor affecting the price of BTC in the short term is the monthly options of the asset expiring this Friday. Kendrick pointed out that according to Deribit's data, there are 18,000 unclosed position contracts for BTC, with exercise prices between $85,000 and $100,000, which may limit price fluctuations before expiration.

However, the demand for BTC among institutional players remains high. Kendrick noted that the BTCSpot ETF has accumulated around 77,000 BTC since the US election earlier this month, while Micro Strategy has purchased an additional 134,000 BTC.

There is no sign of slowing down the purchase of MicroStrategy, and it is unlikely to be sold, but 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, and 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, which will further rise to $200,000 by the end of 2025.

【Disclaimer】The market is risky, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.

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'BTC has fallen below 91,000! Standard Chartered: This level is support, with the hope of reaching 125,000 by the end of the year.' This article was first published in 'encryption city'.