Bitcoin BTC/USD might be on the brink of hitting its highest value ever as the U.S. presidential election approaches.
What Happened: According to a prediction from Standard Chartered’s Geoff Kendrick, as reported by The Block, Bitcoin could reach its previous peak of $73,800, citing several factors:
- A steepening U.S. Treasury yield curve: the yield curve shift, driven by stronger-than-expected U.S. CPI data, indicates market volatility and opens up the possibility of slower interest rate cuts.
- Growing interest in Bitcoin spot ETFs: U.S. spot Bitcoin ETFs experienced their largest single-day net inflows since June on Monday, totaling $555.8 million. Increased activity around Bitcoin call options at the $80,000 strike price suggests institutional investors are positioning for a significant upward move.
polymarket. - Increasing odds of a Donald Trump victory in the November election: Trump’s chances of winning have increased to 57%, according to Polymarket, a prediction platform backed by Trump-Vance ally Peter Thiel. This could significantly impact Bitcoin’s momentum with only three weeks left before the election. The probability of a Republican sweep, where Trump wins and the Republican party controls both the Senate and the House, stands at 39%.
Why It Matters: Standard Chartered analysts have previously noted that Bitcoin’s recent price movements reaffirm its role as a hedge against traditional financial system issues rather than geopolitical tensions.
Kendrick has previously forecasted suggest a potential tripling of Bitcoin's value under a Trump administration, indicating that political outcomes could significantly impact cryptocurrency markets.
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