StanChart sees high volatility for Bitcoin in lead up to US elections

Share This Post

Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, cautioned that Bitcoin (BTC) may experience heightened volatility in the days before the US presidential elections.

Kendrick’s analysis pointed to key metrics indicating an optimistic yet cautious market sentiment among Bitcoin traders as investors brace for economic and regulatory shifts related to the political event.

Cautious optimism

Recent data reveals that Bitcoin’s funding rates — a measure reflecting market sentiment and the premium paid to hold long or short positions — have begun to favor bullish traders, with long positions gaining traction.

Positive funding rates often signal that traders are willing to pay a premium to maintain upward bets, suggesting confidence in Bitcoin’s potential for gains in the short term.

Kendrick highlighted that Bitcoin’s open interest has also stabilized, showing steady engagement among investors without the wild fluctuations in leverage seen in previous months. This stability could indicate a balanced sentiment as traders await potential price shifts related to the election’s outcome.

Another encouraging sign is the recent moderation in short liquidations, which had previously spiked. This decrease suggests a reduced appetite for bearish bets as traders become cautiously optimistic.

According to Kendrick, these trends collectively position Bitcoin for a potentially favorable performance, though he noted that the crypto’s history of volatility around major political events warrants caution.

Post-election outlook

In a report published last week, Kendrick projected that if former President Donald Trump wins the presidency, Bitcoin could see a significant price surge, rising as much as 10% in the immediate aftermath, potentially reaching around $80,000.

Kendrick also noted that a Republican sweep of both the presidency and Congress could create a pro-crypto regulatory environment, which may propel Bitcoin even higher, with a year-end target of $125,000.

Conversely, Kendrick indicated that a Kamala Harris victory might introduce short-term uncertainty for Bitcoin, with an initial price dip expected.

However, he predicted that the downturn would likely be temporary, as the market would adjust to a more measured regulatory pace under a Harris administration. He added that Bitcoin could recover and stabilize around $75,000 by the end of the year, driven by broader market confidence despite a less aggressive regulatory approach.

The post StanChart sees high volatility for Bitcoin in lead up to US elections appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Price Enters ‘Second Breakout Of The Cycle,’ Analyst Puts Peak Above $150,000

The Bitcoin price could see its second massive breakout in this current market cycle, as a crypto analyst has predicted a peak above $150,000 for the pioneer cryptocurrency This bullish forecast

Crypto For Secrets: Chinese Man Sentenced To Life For Selling State Info

State authorities in China are now patching loopholes in the national confidentiality regulations after they discovered that one of their colleagues assigned in a confidential unit sold state secrets

What to Expect for Crypto Under Trump’s New Administration

A Moody’s digital assets expert outlines how a Trump administration and pro-crypto Congress could reshape US crypto regulation, hinting at major industry impacts Expert Analysis: How Trump’s

What’s Next for XRP? Ripple CEO Discusses Crypto Landscape Shift

Ripple and XRP could face a turning point as new pro-crypto regulatory shifts promise renewed hope and potential resolution to years-long legal battles XRP’s Future: Ripple CEO Hints at a New

Bitcoin Analyst Sets $88,800 Target As BTC Breaks ATH 3 Days In A Row – Details

Bitcoin is on a record-breaking run, reaching new all-time highs for three consecutive days following Donald Trump’s victory in the US election and a recent 25 basis point rate cut by the Federal

6-Figure ‘Treasury Asset’ Bitcoin Price Possible By Year-End—Market Expert

The momentum is on Bitcoin and crypto’s side, and it wouldn’t be surprising if the price surge continues until the end of the year One of the biggest drivers of the current performance of Bitcoin