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15 October, 2024

Bitcoin Poised for New High: Standard Chartered Predicts $73,800 Before US Election

15 October, 2024

Bitcoin’s Bullish Trajectory: Standard Chartered Predicts $73,800 Before US Election

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Bitcoin’s recent surge, reaching its highest point since July and briefly touching $67,900, has ignited bullish sentiment among investors. This momentum follows a dip to $58,900 late last week, further fueling optimism about the cryptocurrency’s potential for new highs before year-end. However, according to research from multinational bank Standard Chartered, this optimistic outlook could materialize sooner than anticipated.

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Key Catalysts Driving Bitcoin’s Price Surge

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Geoff Kendrick, head of digital asset research at Standard Chartered, predicts a Bitcoin price of $73,800 ahead of the US presidential election on November 5, representing a 10% increase from current levels. This bullish forecast is driven by a confluence of factors, particularly linked to MicroStrategy, one of the largest public Bitcoin holders, which recently increased its holdings to 252,000 BTC under the leadership of co-founder and Bitcoin advocate Michael Saylor.

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Historically, MicroStrategy and Bitcoin have moved in tandem. However, Kendrick highlights that MicroStrategy’s stock has outperformed Bitcoin recently, indicating a developing premium that could propel Bitcoin prices higher in the coming days. Two key factors underpin this optimistic outlook.

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Regulatory Relief and Institutional Adoption

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The first factor is the news that BNY Mellon has received an exemption from SAB 121, a regulation requiring financial institutions to list cryptocurrencies on their balance sheets. This regulatory relief is seen as a positive signal for the broader Bitcoin market, potentially encouraging wider institutional adoption and fueling the ongoing rally.

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MicroStrategy’s Bitcoin Bank Ambitions

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The second factor revolves around MicroStrategy’s declared intention to evolve into a \”Bitcoin bank,\” offering Bitcoin capital market instruments. Kendrick believes future exemptions could enable the firm to generate yield by lending out its Bitcoin holdings. As the digital asset ecosystem gains legitimacy and accessibility, MicroStrategy’s valuation is expected to rise, benefiting BTC’s price over the long term.

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Presidential Election: A Catalyst for Both Candidates

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Regarding the upcoming presidential election, Kendrick emphasizes that the outcome is secondary to these fundamental factors. Regardless of whether Donald Trump or Kamala Harris wins, the broader digital asset ecosystem is increasingly poised for mainstream adoption.

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While Kendrick has previously suggested that a Trump presidency would be more beneficial for BTC, with proposals for a Bitcoin reserve for the US, he maintains that both candidates could positively impact the asset in the long term. In fact, Kendrick projects that if Trump wins, the Bitcoin price could surge to as high as $125,000 by the end of 2024.

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At the time of writing, BTC trades at $67,000, holding onto gains of 2% in the 24-hour timeframe, despite a quick retracement before reaching $68,000. The stage is set for a potential Bitcoin rally, with a confluence of factors converging to drive the cryptocurrency toward new highs in the near future.