Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
StanChart forecasts Bitcoin will hit $73K before the election due to ETF inflows and a rise in MicroStrategy shares.
Standard Chartered anticipates that Bitcoin (BTC) may exceed $73,000 prior to the US election, fueled by increasing ETF inflows and a rise in call options activity, as indicated in a research note provided to CryptoSlate.
Geoffrey Kendrick, the global head of digital assets at StanChart, pointed out several significant market trends that reflect a bullish outlook leading up to the November election.
Bitcoin set for a significant surge
Kendrick noted that net inflows into Bitcoin ETFs have reached approximately 916,000 BTC as of October 14. This rise aligns with notable interest in Bitcoin call options, especially at the $80,000 strike price for the December 27 expiration.
In just the past week, an additional 1,600 BTC was added to the open interest for the $80,000 call option on Deribit. This increase in options trading, along with steady ETF inflows, indicates that traders are preparing for a possible price breakout as economic and political factors converge ahead of the election.
Kendrick also discussed the potential influence of the US presidential election on Bitcoin’s future. He indicated that based on current conditional probabilities, if former President Donald Trump secures the presidency, there is a 70% likelihood of a Republican sweep. Such a scenario could result in more favorable regulations for digital assets, potentially driving Bitcoin’s price higher.
Related Posts
He mentioned that Bitcoin is expected to outperform Ethereum and other assets in the run-up to the election, supported by strong ETF inflows and the increasing integration of digital assets into traditional finance.
MicroStrategy perspective
Kendrick pointed out MicroStrategy’s (MSTR) recent stock performance, noting a distinct divergence from Bitcoin’s price since mid-September. While Bitcoin has remained relatively stable, MSTR’s NAV multiple has increased significantly, indicating growing investor confidence in the company’s strategic market position.
Kendrick attributed this rise in MSTR’s multiple to the potential effects of the Bank Custody Exemption Rule SAB 121, which could enable institutional counterparties to lend out MicroStrategy’s 250,000 BTC holdings.
This would create additional yield opportunities, strengthening the company’s financial standing. Kendrick stressed that this development enhances the attractiveness of MSTR’s stock, even as Bitcoin’s price stays steady.
He added that the separation of MSTR’s stock from Bitcoin is viewed as a sign of increasing institutional interest in the broader digital asset landscape as it gains credibility. MicroStrategy’s strategic role as a significant BTC holder is propelling its stock upward, positioning the company for further achievements ahead of the US election.
The post StanChart predicts Bitcoin to reach $73K pre-election as ETF inflows, MicroStrategy stock surge appeared first on CryptoSlate.
