Standard Chartered Bank has suggested that Bitcoin’s recent drop below $60,000 is a prime buying opportunity for investors. According to the bank, Bitcoin serves as a reliable hedge against economic uncertainty, although it has yet to achieve the status of a true “safe haven” asset. Nevertheless, the leading cryptocurrency remains a valuable tool for traders looking to safeguard their portfolios during turbulent times.
Bitcoin’s Unexpected Struggles in October
Bitcoin’s performance in early October caught many by surprise. Market experts had predicted that Bitcoin would climb back toward its 2024 high of $70,000 this month. Instead, various macroeconomic challenges and geopolitical tensions caused its value to fall. Standard Chartered notes that this decline could actually be advantageous for certain investors, presenting them with an attractive entry point.
2024 has been a groundbreaking year for Bitcoin and the cryptocurrency industry as a whole. The flagship crypto reached a record high of $73,000 earlier this year, solidifying its role as a significant investment asset. This shift in perception has attracted a growing number of traders and institutional investors alike.
However, Bitcoin has faced several setbacks since August. Its price struggled through both August and September, and according to CoinMarketCap, it has dropped more than 6.9% over the past week. As of now, Bitcoin is trading around $60,600.
A Strategic Opportunity for Traders
In a note shared with Decrypt, Standard Chartered Bank highlighted that Bitcoin’s dip below $60,000 signals a buying opportunity. Geoff Kendrick, the bank’s Global Head of Digital Asset Research, emphasized the potential of Bitcoin as a hedge against economic risks. While it may not yet be reliable for mitigating geopolitical risks, Kendrick pointed out that Bitcoin is an effective hedge against bank collapses, de-dollarization, and concerns surrounding U.S. Treasury bonds.
“Risk concerns in the Middle East are likely to push Bitcoin below $60,000 before the weekend,” Kendrick noted. Despite this, he highlighted that open interest in Bitcoin options indicates that investors see this dip as a buying opportunity.
As the month progresses, many analysts expect Bitcoin’s October downturn to be temporary. Standard Chartered also believes Bitcoin could act as a safeguard against potential U.S. economic issues. With rising fears of a recession and increasing national debt, Bitcoin could play a significant role in the months ahead.
