Standard Chartered, a global financial institution, has made a bold prediction regarding the price of Bitcoin leading up to the US election. According to their analysis, Bitcoin could potentially reach $73,000 before the election date. This forecast is based on the increasing inflows into Bitcoin ETFs and a surge in call options activity, particularly at the $80,000 strike level for the December 27 expiry.
The head of digital assets at Standard Chartered, Geoffrey Kendrick, pointed out several key market movements that indicate a bullish sentiment surrounding Bitcoin. One significant development is the rise in net inflows to Bitcoin ETFs, which have reached approximately 916,000 BTC as of October 14. This growing interest in ETFs is complemented by a notable increase in Bitcoin call options trading, further suggesting that traders are positioning themselves for a potential price surge in the near future.
Kendrick also touched upon the potential impact of the US presidential election on Bitcoin’s performance. He mentioned that if former President Donald Trump were to win the presidency again, there is a 70% chance of a Republican sweep, which could lead to more favorable regulations for digital assets. This, in turn, might drive Bitcoin’s price even higher in the coming weeks.
In addition to Bitcoin’s price outlook, Kendrick highlighted the recent performance of MicroStrategy (MSTR) stock, which has shown a divergence from Bitcoin’s price movement since mid-September. While Bitcoin has remained relatively stable, MSTR’s NAV multiple has experienced a surge. This divergence indicates growing investor confidence in MicroStrategy’s strategic position in the market.
One key factor contributing to MicroStrategy’s stock growth is the potential impact of the Bank Custody Exemption Rule SAB 121. This rule could allow institutional counterparties to lend out MicroStrategy’s significant Bitcoin holdings, creating additional yield opportunities for the company. As a result, MSTR’s stock has become increasingly attractive to investors, even as Bitcoin’s price remains steady.
The decoupling of MicroStrategy’s stock from Bitcoin is viewed as a positive sign of rising institutional interest in the broader digital asset ecosystem. MicroStrategy’s significant holdings of BTC position the company for further success, especially in the lead-up to the US election.
Overall, the analysis from Standard Chartered paints a positive picture for both Bitcoin and MicroStrategy in the coming weeks. With increasing ETF inflows, growing call options activity, and favorable institutional interest, the stage is set for potential price surges and stock growth leading up to the US election. Investors and traders will be closely monitoring these developments as they navigate the evolving landscape of digital assets and traditional finance.