Bitcoin’s recovery toward $69,000 is gathering momentum as improving liquidity conditions revive bullish expectations across the crypto market.
Standard Chartered analyst Geoff Kendrick believes Bitcoin could climb toward $100,000 by the end of 2026, supported by easing pressure in the U.S. bond market and signs that BTC may be approaching a major cycle bottom.
$65,500 Seen as a Key Bitcoin Level
In a recent client note, Kendrick identified $65,500 as an important technical level for Bitcoin.
According to his analysis, a sustained move above that area could strengthen the argument that Bitcoin has already established its cycle low.
Kendrick said investors could begin positioning for a potential move toward $100,000 by year-end 2026 if the recovery continues.
The outlook is based partly on Bitcoin’s historical four-year cycle, which he believes suggests that a major market bottom may be close or already in place.
U.S. Treasury Expands Bond Buybacks
Kendrick also highlighted a major announcement from the U.S. Treasury Department as a potential positive catalyst for Bitcoin.
The Treasury plans to at least double the maximum size of certain liquidity-support buybacks involving longer-dated government bonds.
For nominal Treasury securities with maturities between 10 and 20 years, as well as those between 20 and 30 years, the maximum size of individual buyback operations will increase from $2 billion to at least $4 billion.
The expanded program is scheduled to operate from September 9 through November 4.
Treasury Yields Fall After Announcement
The Treasury announcement contributed to a sharp decline in longer-term government bond yields.
That move helped reduce some of the pressure facing financial markets after a significant bond selloff had pushed borrowing costs higher.
Lower Treasury yields can improve broader financial conditions by reducing the relative attractiveness of interest-bearing assets and easing pressure across risk markets.
This environment could potentially benefit assets such as Bitcoin.
Why Treasury Liquidity Could Support Bitcoin
Kendrick argued that Treasury actions designed to improve market liquidity could create favorable conditions for Bitcoin prices.
Bitcoin has historically responded positively during periods when government or central-bank policies increase liquidity within the financial system.
The cryptocurrency’s fixed supply of 21 million coins also contributes to its appeal among investors who view Bitcoin as a hedge against currency debasement or expanding government balance sheets.
As liquidity conditions improve, investors may become more willing to increase exposure to higher-risk assets, including cryptocurrencies.
Bitcoin Surges More Than 6%
Bitcoin’s recent price action has provided early support for the bullish outlook.
BTC climbed more than 6% and approached $69,000 during Wednesday’s U.S. trading session, reaching its highest level since early June.
The rally came shortly after the Treasury announced its expanded bond-buyback program, strengthening expectations that improved liquidity conditions could provide additional support for crypto markets.
Can Bitcoin Reach $100,000?
A move toward $100,000 Bitcoin would still require substantial additional gains from current levels.
However, several factors could support the bullish scenario. These include falling Treasury yields, improving financial liquidity, stronger investor demand, and Bitcoin’s limited supply.
The $65,500 level remains an important area to watch according to Kendrick’s analysis. Holding above that threshold could strengthen confidence that the recent market low is behind Bitcoin.
For now, traders will closely monitor U.S. Treasury yields, liquidity conditions, institutional demand, and Bitcoin’s technical structure to determine whether the current rebound can develop into a broader move toward the $100,000 target.
