Bitcoin poised for breakout as bond market conditions favor digital assets, says Standard Chartered

Standard Chartered sees current market conditions as supportive for bitcoin and the wider digital asset sector, as long as yields stay contained and the economy remains stable.

The bank's global head of digital assets research, Geoff Kendrick, said in a note on Friday that the yields on 10-year Treasury notes have held below 4.50%, suggesting that the bond market is not pricing in aggressive Fed tightening. That, in turn, supports risk assets like bitcoin.

"The so far inability of 10-year U.S. treasury yields to break back above 4.50% despite the strong detail in today's U.S. payrolls release is very constructive for digital assets," Kendrick said. "Yields not higher, but the economy still in good shape, is a Goldilocks zone for digital assets."

21Shares Crypto Research Strategist Matt Mena shared a similar view and noted that falling bond yields and a weaker dollar would create a favorable backdrop for risk assets, particularly bitcoin, which thrives in environments of easier monetary conditions.