Standard Chartered has cautioned that Bitcoin’s price could drop below $60,000, influenced by rising geopolitical tensions in the Middle East. However, the banking giant views this as a buying opportunity, particularly for investors looking to increase their BTC holdings in the long term.
Geopolitical Tensions and Potential Bitcoin Dip
On Thursday, Standard Chartered issued a warning that Bitcoin may experience a short-term decline due to escalating tensions in the Middle East. According to Geoff Kendrick, the bank’s global head of digital assets research, concerns about the geopolitical situation could push Bitcoin’s price below the $60,000 mark by the weekend. However, Kendrick pointed out that this drop might present a chance for investors to capitalize on the lower prices.
“Risk concerns related to the Middle East seem destined to push bitcoin below $60,000 before the weekend,” Kendrick said. He noted that despite this, positions like $80,000 call options suggest that any dip should be viewed as a buying opportunity.
Impact of U.S. Presidential Race on Bitcoin
In addition to the geopolitical risks, Standard Chartered highlighted a unique relationship between Bitcoin’s price and the upcoming U.S. presidential race. Kendrick explained that former President Donald Trump’s rising odds of winning could have a positive impact on Bitcoin’s long-term outlook. Trump has expressed support for Bitcoin in the past, and his presidency could lead to a more favorable regulatory environment for cryptocurrencies.
On the other hand, a victory by Vice President Kamala Harris could slow regulatory progress, which might initially trigger a price decline in the cryptocurrency market. However, Kendrick suggested that this would still present a buying opportunity, as investors are likely to purchase Bitcoin during any post-election dips, recognizing that regulatory advancements would still come in time.
“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,” Kendrick said.
Bitcoin Price Predictions Under Trump vs. Harris
Earlier this month, Kendrick provided price predictions based on potential outcomes of the 2024 U.S. election. He suggested that under a Trump presidency, Bitcoin could surge to $125,000, while under Harris, it could reach $75,000, although temporary dips could occur under her leadership.
Kendrick also pointed to a notable rise in Bitcoin call options, signaling optimism among investors. Specifically, the number of call options with a strike price of $80,000 for the December 27 expiry on Deribit increased by 1,300 BTC in the last two days. This uptick in open interest reflects strong market sentiment, further supporting the view that investors are positioning themselves for potential upside.
