Standard Chartered Predicts Bitcoin to Reach New All-Time High on November 5th
According to Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, Bitcoin could reach a new all-time high of $73,000 on November 5th, which is the day of the US presidential election. Kendrick’s prediction is based on his analysis of Bitcoin futures and trading volume indicators.
“We use daily Bitcoin volume levels and popular strike levels to predict post-election price movements. Our baseline assumption is that the BTC price will be around $73,000 on election day,” said Kendrick.
Kendrick also highlighted the potential price action based on the outcome of the election. If former President Donald Trump wins the presidency, options breakevens suggest a potential 4% increase in Bitcoin’s price once the results are certified. He also suggested a potential total increase of around 10% in the days following a Trump victory.
The analyst emphasized the significance of dynamics in the options market, noting the heavy open interest in BTC call options that expired at an $80,000 strike price on December 27th and the rapid movement towards this level.
Furthermore, Kendrick suggested that a Republican takeover of Congress could push Bitcoin prices even higher. “If Republicans take control of Congress, our year-end target for Bitcoin could be $125,000,” he said. On the other hand, if Vice President Kamala Harris prevails, Bitcoin could experience an initial drop but is expected to finish 2024 around $75,000.
Kendrick also pointed to recent trading activity as a positive indicator for Bitcoin’s future. “The price of Bitcoin has been rising in recent weeks, coinciding with other trades popular with Trump supporters,” he said. He cited RealClearPolitics’ current odds, which give Trump a 59% chance of winning, and certain markets like Polymarket, which have a 75% chance of the Republicans winning the election if Trump wins.
The analyst added that the recent local low of $65,200 seen on Wednesday could be the final dip before the US elections, indicating increasing momentum heading into November 5th.
Please note that this article does not constitute investment advice.
