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Standard Chartered sees opportunity as Bitcoin nears $60K dip

Standard Chartered sees opportunity as Bitcoin nears $60K dip

GrafaGrafa2024/10/05 05:30
By:Isaac Francis

Standard Chartered has cautioned that Bitcoin's (CRYPTO:BTC) price could dip below $60,000 due to rising geopolitical tensions in the Middle East.

Despite this warning, the bank views the potential decline as a buying opportunity for investors, highlighting the unique relationship between Bitcoin's price and the U.S. presidential race.

According to Geoff Kendrick, Standard Chartered’s global head of digital assets research, the tensions in the Middle East are likely to push Bitcoin’s price below $60,000 before the weekend.

However, he noted, "Positions like the $80,000 call options and the circularity vis-à-vis Trump probabilities suggest the dip should be bought into."

Kendrick also emphasized the evolving U.S. presidential race, where former President Donald Trump’s improving odds could positively impact Bitcoin’s long-term outlook.

He pointed out that geopolitical concerns may temporarily drive Bitcoin’s price lower, but they could simultaneously boost Trump’s chances in the election, a factor that could be favorable for Bitcoin after the election.

Some analysts believe a Trump win could benefit the cryptocurrency market, given his support for Bitcoin.

On the other hand, Kendrick warned that a Kamala Harris victory could slow regulatory progress in the crypto space.

He stated, “A Harris victory would likely trigger an initial price decline, but we would expect investors to buy the dips as the market recognizes that progress on the regulatory front will still be forthcoming.”

According to earlier projections from Standard Chartered, Bitcoin could reach $125,000 under a Trump presidency, while a Harris presidency could see it reach $75,000, with temporary price drops along the way.

Kendrick also highlighted a surge in Bitcoin call options, noting that open interest for the $80,000 strike price on Deribit increased by 1,300 BTC over the last two days.

He added, “Bitcoin is a hedge against traditional finance issues such as bank collapses or de-dollarization.”

At the time of reporting, the Bitcoin price was $61,847.57.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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