Standard Chartered: Bitcoin set to soar amid concerns over Fed independence

The first cryptocurrency is expected to rise in value as long as the threats to the independence of the Federal Reserve persist, according to a report by Standard Chartered, as mentioned in an article on The Block.

Experts suggest that in this scenario, Bitcoin will serve as a decentralized hedge against traditional financial systems. Its primary function is to protect against risks from both the private sector, such as bank bankruptcies, and governmental concerns regarding the Fed’s autonomy.

Analysts point out that historically, Bitcoin has shown a strong correlation with the term premium on ten-year U.S. government bonds, particularly since the beginning of 2024.

Recently, Bitcoin has been more reactive to the movements of technology stocks amidst the «tariff war,» but it may be able to recover lost ground if worries about the Fed’s independence do not fade away.

«This could be the catalyst that drives it to a historic high,» the report states.

Standard Chartered has confirmed its target prices for Bitcoin, forecasting $200,000 by the end of 2025 and $500,000 by the end of 2028.

It is worth noting that in March, the bank revised its 2025 price projection for Ethereum, lowering it from $10,000 to $4,000, citing the growing influence of Layer 2 solutions, particularly the Base platform.

Earlier, Standard Chartered assessed the market capitalization of stablecoins to reach $2 trillion by 2028.