Bitcoin Price Prediction: Election Outcome Could Drive Crypto to $80,000
Get ready for some political crypto-drama! According to Standard Chartered, Bitcoin could hit a whopping $73,000 by the US presidential election on November 5th. But here’s the twist: if former President Donald Trump wins, the cryptocurrency is projected to soar beyond $80,000 shortly after.
This bold prediction stems from the bank’s analysis of current options data and betting odds, which suggests a strong link between Trump’s electoral success and investor sentiment towards Bitcoin.
“The odds of a Trump victory, now at 59%, indicate Bitcoin will trade higher into the election,” stated Standard Chartered’s Geoffrey Kendrick in a note to Benzinga. The bank’s analysts believe that if Trump secures the presidency, Bitcoin could see a quick 4% jump, reaching around $76,000.
Post-Election Surge: $80,000 in Play
Standard Chartered’s prediction hinges on Bitcoin options break-even levels and popular call strike prices. Their analysis indicates that a Trump win could propel Bitcoin to $80,000. The heavy open interest in BTC calls expiring on December 27th at the $80,000 level suggests strong market anticipation of a post-election rally.
“Our estimates show a total price increase of around 10% from the pre-election price, taking Bitcoin to $80,000 within days of the presidential result,” Kendrick said.
A Bullish Outlook for Bitcoin: Year-End Target of $125,000
Looking beyond the immediate aftermath of the election, Standard Chartered maintains its bullish stance on Bitcoin. They predict that a Republican sweep of both the presidency and Congress could drive the cryptocurrency to $125,000 by the end of 2024. This target, however, depends on the full results of the congressional races, which may take longer to confirm.
“Should the Republicans win Congress, the conditions will be set for a substantial year-end rally, bringing our $125,000 target into view,” the report states.
A Different Scenario: A Harris Win
The outlook changes if Vice President Kamala Harris emerges victorious. In this scenario, Standard Chartered expects Bitcoin to initially trade lower, but still end the year at new highs around $75,000.
The Intersection of Politics and Crypto
The recent surge in Bitcoin’s price aligns with broader market optimism linked to Trump’s improving election odds. Betting platforms like Polymarket, which utilizes blockchain technology, give the former president a 61.9% chance of winning, with a Republican sweep further bolstering the bullish sentiment for Bitcoin. This intriguing intersection of politics and cryptocurrency will be a key topic at Benzinga’s Future of Digital Assets event on November 19th, where experts will discuss how factors like US elections are shaping the future of digital currencies.
This news highlights the increasing influence of political events on the cryptocurrency market. As the US election draws near, all eyes are on Bitcoin, waiting to see if it will ride the political wave to new highs.