Standard Chartered Predicts 12% Upside for Bitcoin Ahead of Election
Standard Chartered forecasts that Bitcoin could rise to $73,800 in the weeks before the US presidential election, an increase of 12%. The analysis highlights influences from MicroStrategy, which owns a significant amount of Bitcoin, and regulatory changes that could benefit the cryptocurrency market. Geoff Kendrick suggests that the presidential election outcome may be less impactful than these market drivers, with both candidates likely aiding Bitcoin’s long-term prospects.
Standard Chartered has projected that Bitcoin, the leading cryptocurrency, may reach $73,800 in the weeks leading up to the United States presidential election, representing a potential gain of 12% from current levels. This optimistic forecast hinges on influences observed from MicroStrategy, a company renowned for its substantial Bitcoin holdings, which have recently swelled to approximately 252,000 bitcoins. The firm’s head of digital asset research, Geoff Kendrick, highlighted a divergence in trading patterns between Bitcoin and MicroStrategy, suggesting that two critical factors may be propelling Bitcoin’s price upwards. The first factor mentioned is the recent exemption granted to BNY Mellon from SAB 121, a regulation that mandates cryptocurrency dealers to include digital assets on their balance sheets. Such regulatory easing is typically seen as a favorable sign for Bitcoin’s market momentum. The second element pertains to MicroStrategy’s strategic initiative to evolve into a “bitcoin bank,” which involves offering Bitcoin capital market instruments in the near future. Kendrick anticipates that future exemptions could enable MicroStrategy to generate yields by lending Bitcoin. Kendrick posits that these developments will enhance the legitimacy and accessibility of the broader digital asset ecosystem, which could, in turn, elevate MicroStrategy’s valuation metrics. He believes that the outcome of the presidential election is secondary to these underlying bullish dynamics and emphasizes that both potential outcomes, whether victory for Donald Trump or Kamala Harris, could provide positive momentum for Bitcoin. Furthermore, Kendrick has stated that Trump’s presidency could lead to even greater price surges in Bitcoin, potentially reaching $125,000 by the end of 2024.
Bitcoin has been a subject of extensive analysis and speculation, especially as the US presidential election approaches. The cryptocurrency market is influenced by a variety of factors, including external market regulation, institutional adoption, and the broader economic landscape. Recently, MicroStrategy has attracted attention for its aggressive accumulation of Bitcoin, marking it as a bellwether for other investors. The correlation between MicroStrategy’s stock and Bitcoin pricing is of significant interest to analysts, spotlighting how institutional activities can impact cryptocurrency valuations. Furthermore, regulations surrounding cryptocurrencies play a pivotal role in shaping market dynamics, thus warranting close observation in the lead-up to significant political events like elections.
In conclusion, Standard Chartered anticipates a bullish trend for Bitcoin, projecting a possible surge to $73,800 as the US presidential election approaches. Influential factors such as the regulatory environment and MicroStrategy’s strategic initiatives are seen as key drivers of this potential price increase. Regardless of the election outcome, these developments are expected to bolster Bitcoin’s legitimacy in the financial landscape, paving the way for continued growth in the cryptocurrency market.
Original Source: markets.businessinsider.com
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