Standard Chartered Calls Bitcoin a Tariff Risk Hedge
Date: 2025-04-08 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Global markets have seen a massive downturn since President Donald Trump declared “Liberation Day” on April 3.
Kendrick argues that the current downturn is temporary and that Bitcoin could rebound to $84,000 if traditional markets do not experience a significant collapse.
“The US isolationist policy is reminiscent of the increasing risks of fiat currency ownership, which ultimately plays into Bitcoin’s hands,” Kendrick said.
According to him, the key support for Bitcoin is the $76,500 level, which represents the upper limit of the daily candle recorded on November 6, 2024, the day after the US election.
Despite the market downturn, Kendrick emphasized that Bitcoin continues to outperform the leading tech stocks in the Mag 7 index, with the exception of Microsoft and Google.
The Mag 7 index includes stocks of tech giants known as the "Magnificent Seven": Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla.
Kendrick suggested considering Bitcoin as a defensive asset not only against American isolation, but also as a hedge against tariff risks.
JPMorgan Fixed Income Director Bob Michel expressed his opinion on the Federal Reserve's future course in an interview with Bloomberg. In his opinion, the Fed is likely to cut rates, despite Chairman Jerome Powell's statements.
Powell said that he will closely monitor the effects of tariff policy before making final decisions.
Michel noted that the current decline in stock indices is reminiscent of the crises of 1987, 2008 and 2020, when the Fed invariably resorted to emergency easing of monetary policy.
An extraordinary meeting of the Fed is scheduled for March 7 at 18:30 (Moscow time).
According to the CME FedWatch Tool, 60.2% of traders expect the regulator to leave the key rate unchanged at the upcoming meeting on May 7. The remaining 39.8% expect a rate cut of 25 basis points.
