Bitcoin (BTC) Price Saw a 2% Price Increase in the Past 24 Hours, Recovering From a Daily Low of $79,059.43 to an Intraday High of $83,737.45. This Volatility Highlights the Leading Cryptocurrency's Sensitivity to Broader Market Forces.

Bitcoin saw a 2% price increase in the past 24 hours, recovering from a daily low of $79,059.43 to an intraday high of $83,737.45. This volatility highlights the leading cryptocurrency's sensitivity to broader market forces.

Bitcoin price rose 2% in the past 24 hours as it recovered from a 24-hour low of $79,059.43 to an intraday high of $83,737.45. This signaled the sensitivity of the leading cryptocurrency to broader market forces.

According to Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, Bitcoin’s performance is closely linked to the Magnificent Seven tech stocks. In fact, when comparing volatility-adjusted returns, he says that Bitcoin ranks in the same league as Tesla (TSLA), Meta (META), and Apple (AAPL).

What’s Driving Bitcoin’s Price?

Kendrick maintains that Bitcoin’s recent dip wasn’t due to any fundamental weakness. Instead, he attributes it to macroeconomic factors impacting global risk assets.

He highlights two critical factors for Bitcoin’s price recovery. First, a rebound in high-growth tech stocks, like the Magnificent Seven, could indicate a positive shift for Bitcoin.

Second, further accumulation of Bitcoin, like the US government’s plan to create a Bitcoin reserve, could be a bullish catalyst. And if other countries follow suit, the demand for BTC would increase again.

Fed Policy: A Major Wildcard

A crucial short-term factor influencing Bitcoin’s price is the Federal Reserve’s interest rate policy. The Federal Open Market Committee (FOMC) meets on March 19, and the market is almost certain (97%) that rates will remain at 4.50%-4.75%. This decision could have a significant impact on Bitcoin’s price.

If the Fed hints at future rate cuts, it could benefit Bitcoin by signaling a return of investor confidence and a “risk-on” environment.

Kendrick adds that if the odds of a May rate cut increase from 50% to 75%, then we could see a 15%-20% move in BTC from current levels.

Key Price Levels to Watch

The 20-day Exponential Moving Average (EMA), currently at $87,388, is a key resistance level that Bitcoin must clear to regain bullish momentum.

However, crypto market analyst Ali Martinez highlights on-chain data from Standard Chartered, showing strong support at $79,270 and a deeper support zone at $69,450. If Bitcoin price slips below $76,500, it could retest these lower levels.

Despite the short-term uncertainty, Kendrick remains optimistic in his long-term outlook. He predicts that Bitcoin will reach $200,000 by the end of 2025.