Standard Chartered‘s Head of Digital Assets Research Geoffrey Kendrick on Monday advised against buying the dip in cryptocurrencies until outright back-end U.S. Treasury yields come lower.
What Happened: In a note to Benzinga, Kendrick stated that the current sell-off differs significantly from the previous one.
While last week’s decline, driven by developments around China’s DeepSeek, was a buying opportunity, today’s market downturn stems from newly imposed U.S. tariffs on Canada and Mexico, fueling inflation concerns and dragging down risk assets.
Kendrick explained that the tariffs are having a “outright negative” effect on digital asset prices by increasing U.S. inflation expectations.
He highlighted a 10 basis point increase in 2-year inflation expectations since Friday, further compounding the pressure on risk assets.
“The bigger/next question for me is whether and/or when growth fears outweigh inflation fears,” he said, explaining that the market needs to see nominal yields at …
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