Bitcoin (BTC/USD) might be on the verge of hitting its highest value ever as the U.S. presidential election approaches, according to a prediction by Standard Chartered’s Geoff Kendrick. He believes Bitcoin could reach its previous peak of $73,800, citing several key factors:
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A Steepening U.S. Treasury Yield Curve:
The yield curve shift, driven by stronger-than-expected U.S. CPI data, indicates market volatility and opens up the possibility of slower interest rate cuts. This trend could benefit Bitcoin’s value as investors seek alternative assets.*
Growing Interest in Bitcoin Spot ETFs:
U.S. spot Bitcoin ETFs witnessed their largest single-day net inflows since June on Monday, totaling a whopping $555.8 million. This surge in investment signifies increasing institutional confidence in Bitcoin and its long-term potential.*
Increased Activity Around Bitcoin Call Options:
The growing number of call options at the $80,000 strike price suggests institutional investors are strategically positioning themselves for a significant upward move in Bitcoin’s price. This indicates a strong belief in Bitcoin’s future value.*
Increasing Odds of a Donald Trump Victory:
Trump’s chances of winning the November election have climbed to 57%, according to Polymarket, a prediction platform backed by Trump-Vance ally Peter Thiel. If Trump wins, it could have a major impact on Bitcoin’s momentum, especially with just three weeks remaining before the election. The probability of a Republican sweep, where Trump wins and the Republican party controls both the Senate and the House, stands at 39%.Standard Chartered analysts have previously noted that Bitcoin’s recent price movements reaffirm its role as a hedge against traditional financial system issues rather than geopolitical tensions. Kendrick has previously forecast a potential tripling of Bitcoin’s value under a Trump administration, suggesting that political outcomes could significantly impact cryptocurrency markets. This highlights the intricate relationship between political events and the volatile cryptocurrency market.