Anticipated Bitcoin Rally in Response to US Presidential Contest
Standard Chartered has put forth a forecast pertaining to the trajectory of bitcoin’s value as the U.S. presidential election draws near. Geoffrey Kendrick, the bank’s head of foreign exchange and digital assets research, revealed this information on Tuesday. According to Kendrick, there is a strong possibility of bitcoin reaching a new all-time high in August, followed by hitting $100,000 by the day of the U.S. election.
The analyst’s prediction is contingent upon President Joe Biden continuing to participate in the presidential campaign, which the market perceives as heightening the likelihood of former President Donald Trump securing a second term in office. This potential scenario is viewed as advantageous for bitcoin, as a triumph for Trump could usher in policies that are more conducive to the cryptocurrency market. Kendrick is of the opinion that a Trump victory might establish a regulatory framework that is supportive of the growth of digital assets.
Trump has positioned himself as the “crypto president.” In a recent development, he engaged with key figures in the bitcoin mining sector and vowed his backing for bitcoin mining activities. Additionally, he pledged to reverse the anti-crypto measures implemented by the Biden administration and to grant clemency to Ross Ulbricht. Notably, prominent proponents of cryptocurrencies, such as Jesse Powell of Kraken and the Winklevoss twins of Gemini, have extended financial support to Trump’s electoral campaign.
Kendrick elaborated on the rationale behind these expectations, stating that enhanced regulatory support and a positive outlook toward mining activities could materialize under a Trump administration. The analyst at Standard Chartered also shared insights regarding potential outcomes in the context of the presidential race. He highlighted an improbable scenario wherein Biden withdraws from the race towards the end of July, which could potentially lead to a decline in bitcoin prices to the range of $50,000-$55,000.
Furthermore, Kendrick emphasized the significance of August 4 as a crucial date with respect to Biden’s decision-making process. He pointed out that under Ohio law, this date marks the deadline for presidential candidates to finalize their registration. Thus, if Biden remains the Democratic nominee beyond August 4, he is likely to maintain this status through the initial week of November. Additionally, should a highly credible candidate replace Biden on the Democratic ticket, Kendrick speculates that bitcoin prices may experience a period of relative stability.
Standard Chartered has upheld its year-end target for bitcoin at $150,000, along with a projection of $200,000 for 2025. What are your thoughts on the bitcoin projections outlined by Standard Chartered amidst the unfolding U.S. presidential race? Share your opinions in the comments section below.
