Bitcoin has recently experienced a significant upswing, reaching its highest point since July by briefly touching $67,900 and recovering a notable 7%. This uptick follows a decline to $58,900 at the end of last week, further energizing bullish sentiment among investors who are optimistic about the cryptocurrency’s potential to achieve new milestones before the year concludes.
Interestingly, research from the multinational bank Standard Chartered suggests that this optimistic outlook might materialize sooner than anticipated.
Key Factors Influencing Bitcoin’s Price Surge
Geoff Kendrick, the head of digital asset research at Standard Chartered, recently projected that Bitcoin’s price could escalate to $73,800 ahead of the US presidential election on Tuesday, November 5. This projection represents a 10% increase from current levels, particularly influenced by one of the largest public BTC holders, MicroStrategy. The firm has recently amplified its holdings to 252,000 BTC, under the guidance of co-founder and well-known Bitcoin advocate Michael Saylor.
MicroStrategy’s Influence on Bitcoin’s Price
Historically, MicroStrategy’s stock and Bitcoin have moved in tandem. However, Kendrick points out that MicroStrategy’s stock has recently outperformed Bitcoin, indicating a developing premium that could propel Bitcoin prices higher in the forthcoming days.
Institutional Adoption and Regulatory Relief
Two critical elements underpin this optimistic forecast. Firstly, news reported by Bitcoinist last month revealed that BNY Mellon received an exemption from SAB 121—a regulation mandating financial institutions to list cryptocurrencies on their balance sheets. Kendrick explains that such regulatory relief is often perceived as a positive signal for the broader Bitcoin market, potentially encouraging wider institutional adoption and acting as a bullish catalyst for the ongoing rally observed in recent days.
MicroStrategy’s Vision of a “Bitcoin Bank”
The second factor relates to MicroStrategy’s declared ambition to evolve into a “Bitcoin bank,” which entails offering Bitcoin capital market instruments. Kendrick believes that future regulatory exemptions could allow the firm to generate yield by lending out its Bitcoin holdings. As the digital asset ecosystem gains legitimacy and accessibility, he argues that MicroStrategy’s valuation should rise, further benefiting Bitcoin’s price over the long term.
The Impact of the US Presidential Election on Bitcoin
Regarding the upcoming presidential election, Kendrick considers the outcome secondary to these fundamental factors. He asserts that irrespective of whether Donald Trump or Kamala Harris wins, the broader digital asset ecosystem is increasingly poised to enter the mainstream.
Potential Outcomes and Projections
While Kendrick has previously indicated that a Trump presidency might be the most favorable scenario for Bitcoin, proposing notable industry initiatives like establishing a national Bitcoin reserve, he maintains that both candidates could positively influence the asset in the long term. In fact, Kendrick projects that if Trump regains the presidency, Bitcoin’s price could soar to as high as $125,000 by the end of 2024.
Current Bitcoin Market Dynamics
At the time of writing, Bitcoin is trading at $67,000, retaining some of its gains of 2% within a 24-hour timeframe, despite briefly retracting before reaching $68,000. The current market dynamics suggest that Bitcoin remains on an upward trajectory, as reflected in the 1D chart sourced from TradingView.com.
