Standard Chartered believes Bitcoin will regain the $73,000 price level on Election Day, November 5th.
According to the report “Bitcoin: Post-US Election Strategy'' written by Jeffrey Kendrick, the company's head of digital asset research, there is a possibility that the main virtual currency will see large price fluctuations before and after the next US presidential election. It is said that there is.
Additionally, the report reaffirmed previous six-digit price predictions and stated that Bitcoin could reach $125,000 by the end of the year if Republicans secure both the president and Congress.
Trump victory could boost Bitcoin
According to the report, Bitcoin could rise by up to 10% in the days following the election if former President Donald Trump is declared the winner.
Gambling markets, including polymarkets, currently have a 59% to 64% chance of Trump winning, and a 75% chance that Republicans will take control of Congress if Trump wins.
Immediately following this result, Bitcoin is expected to rise 4% overnight, reaching around $76,000. High interest in a late December Bitcoin call option with a strike price of $80,000 suggests the market is expecting further upward momentum.
According to Kendrick,
“With open interest for December BTC call options high at the $80,000 level, we expect the price to continue rising and potentially reach $80,000 within days of the outcome.”
Additionally, Standard Chartered predicts that Bitcoin could reach $125,000 by the end of the year if Republicans take control of Congress. The Republican-dominated Congress is expected to implement regulatory reforms that favor cryptocurrencies, which will provide a strong tailwind for Bitcoin prices.
Harris victory causes temporary decline
In contrast, a Kamala Harris victory could initially push Bitcoin prices lower. The report suggests that the Harris administration could delay enacting favorable crypto regulations, causing short-term uncertainty in the market.
However, Kendrick pointed out that Bitcoin's downturn could be short-lived, with Bitcoin likely to recover and end up at around $75,000 by 2024. He added:
“Markets will recognize that regulatory changes are still possible under the Harris administration, but they may occur at a more measured pace than under President Trump.”
Although Harris is expected to take a less aggressive approach, the overall outlook for Bitcoin remains positive, albeit more cautiously optimistic. This sentiment is echoed by others in the industry who believe Bitcoin will continue to grow regardless of the election outcome.
With the US election just days away, Bitcoin's future appears to be closely tied to the political outcome. Market volatility is expected to remain high, and traders will closely monitor the election results as a key indicator of Bitcoin's price trajectory.
