Banking giant Standard Chartered has released a report forecasting a potential surge in bitcoin’s value, with Geoff Kendrick, the bank’s Global Head of Digital Assets Research, predicting that bitcoin could approach its all-time high of $73,800 in the weeks leading up to the U.S. presidential election.
In the report issued on Tuesday, Kendrick explained that multiple factors are contributing to bitcoin’s recent upward momentum. He stated:
“For bitcoin, the combined factors mean a bleed up towards the all-time high of $73,800 looks likely pre-election.”
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Key drivers behind this trend, according to Kendrick, include the steepening U.S. Treasury yield curve, growing interest in spot bitcoin exchange-traded funds (ETFs), and improving election odds for Donald Trump.
Kendrick also emphasized the increasing institutional involvement, including strong inflows into spot bitcoin ETFs and rising demand for bitcoin call options.
He highlighted activity around the $80,000 strike price for bitcoin call options expiring on December 27 on the Deribit exchange, noting that “Another 1,500 bitcoin was added to the open interest of the $80,000 call in the past week,” signaling rising confidence in a price rally.
He further noted that Trump’s chances of winning have risen to 56.3%, according to Polymarket, which could be fueling bitcoin’s upward trajectory as the election nears.
Additionally, there is a 39% chance of a Republican sweep, with Trump winning and Republicans controlling both the Senate and the House.
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Kendrick added that, if Trump wins, the odds of a Republican sweep jump to 70%, potentially creating a favorable environment for risk assets like bitcoin.
Regardless of the election’s outcome, Kendrick stressed that “the broader trend towards digital asset adoption remains intact.”
Standard Chartered recently projected that bitcoin could reach new all-time highs by the end of 2024, regardless of the election.
Kendrick suggested bitcoin could climb to $125,000 if Trump wins, or to $75,000 under a Harris presidency, with short-term declines likely if Harris takes office.
While regulatory concerns remain, other factors, like the U.S. Treasury yield curve, continue to support a positive outlook for bitcoin.