Bitcoin BTC/USD has the potential to break out to a new all-time high above $108,000 in February, according to a new note by Standard Chartered.

What Happened: Geoffrey Kendrick, the bank’s head of digital assets writes a break higher is contingent on the absence of negative market catalysts, such as further DeepSeek developments or new tariff announcements,

Key to this outlook is the behavior of U.S. Treasury yields, with a specific focus on the 10-year yield failing to consistently break above the 4.50% level.

In a note sent to Benzinga, Kendrick said he believes that the inability of US Treasury yields to exceed 4.50% is “very constructive for digital assets”, further noting the economic backdrop is, “Yields not higher, but the economy still in good shape is Goldilocks for digital assets.”

Kendrick also said that the price of Bitcoin must break $102,500 first.

Adding to Kendrick’s positive outlook is the importance of avoiding additional negative developments that have impacted digital assets in recent weeks.

"Then if we get no more bad news (no DeepSeek, no new tariffs) I think we can say conditions have improved for digital assets, opening up the potential for a fresh all-time high in February,” he said.

Bitcoin is currently trading at $97,900 levels, up about 1.2% on Friday afternoon Eastern time, while Ethereum ETH/USD is trading flat at $2,695.

Major altcoins like Solana SOL/USD, BNB BNB/USD and Dogecoin DOGE/USD are trading up 4%, 1.8% and 2%, respectively, mirroring the sentiment from Kendrick.

Also Read: BlackRock Expands Investment In Bitcoin-Heavy Strategy, Reaching 5% Ownership

Why It Matters: Matt Mena, Crypto Research Strategist at 21Shares, also highlighted the importance of macroeconomic factors.

"This sets the stage for Bitcoin to benefit as investors position for a potential rate cut later this year," Mena told Benzinga, adding that the the Federal Reserve has little incentive to keep rates high.

“A backdrop of lower yields and a weakening dollar would be constructive for risk assets, particularly Bitcoin, which thrives in an environment of easier monetary conditions,” he added.

Mena believes that confidence in traditional markets is also a key factor to see more growth.

With the S&P 500 holding firm, traditional finance investors may start to lean further into riskier assets such as Bitcoin and Ethereum ETFs.

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