Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, recently highlighted that Bitcoin’s current upward momentum has the potential to help it surpass $73.8k to create a new all-time high before the upcoming elections in the US.
Background
- According to Kendrick, a host of factors — including a steepening in the US Treasury yield curve, renewed market interest in spot BTC ETFs, and the rising odds of Donald Trump’s victory in the upcoming elections — are fuelling the price of the asset
- Notably, BTC and other digital assets have "finally started to rise," reacting to the steepening of the 2s10s yield curve
- The aforementioned yield curve is nothing but the difference between the 2-year and 10-year US Treasury yields
- The shift in the yield curve also points towards increasing market volatility and anticipation of potential interest rate hikes
- Together, they drive demand for assets like BTC
Who said what?
- Kendrick said,
"For Bitcoin the combined factors mean a bleed up towards the all-time high of $73,800 looks likely pre-election”
- He added,
"In conditional probability terms, if Trump wins, there is a 70% chance of a Republican sweep, which could create favorable conditions for risk assets, including Bitcoin"
Why should you pay attention?
- Furthermore, there’s increased activity pertaining to BTC call options being registered at the $80,000 strike price for December 27 expiry on Deribit
- The analyst highlighted that another 1,500 BTC was added to the open interest of the $80k call over the past week
- This indicates that institutional investors expect the upswing to prolong over the mid-term time frame
Zooming out
- BTC is currently hovering around $65.5k, up 5% on the weekly window
- MicroStrategy — one of the most aggressive corporate buyers — ha every compan
- A coincidence? Likely not. The company started acquiring BTC the same year
- Saylor’s thesis also argues that BTC is the top-performing asset of the 21st century
- Kendrick pointed out that the growing institutional legitimacy could provide a tailwind for BTC in the coming weeks
