Standard Chartered Bank: Bitcoin price target depends on Harris or Trump victory

Bitcoin (BTC) is anticipated to hit an all-time excessive by the tip of 2024, in response to Customary Chartered Financial institution.

A latest CoinDesk article quoted the financial institution’s world head of digital property, Geoff Kendrick. ReportBitcoin might climb to $125,000 if former US President Trump wins the upcoming election and $75,000 if Kamala Harris turns into president.

Political impression on Bitcoin

Whereas the presidential election is understood to have an effect on monetary markets, Customary Chartered believes result This yr’s election could have much less of an impression on Bitcoin than throughout the Biden-Trump marketing campaign.

Kendrick defined that markets are actually anticipating key regulatory developments no matter who takes workplace. Particularly, the potential abolition SAB 121 is a strict accounting coverage applied by the U.S. Securities and Alternate Fee (SEC) on banks’ digital asset holdings. It’s more likely to be applied in 2025, offering a powerful impetus for Bitcoin.

The financial institution’s report additionally famous that whereas Trump is taken into account extra crypto-friendly than Harris, the latter’s administration is not going to halt Bitcoin’s rise however could sluggish the tempo of regulatory progress.

Along with the election, adjustments within the U.S. Treasury market are one other key issue that the financial institution’s cryptocurrency chief expects to help Bitcoin’s progress. He emphasised that the U.S. Treasury curve is presently re-steepening and that the break-even level is falling lower than actual yields.

The mixture of declining risk-neutral yields and secure time period premiums is constructing what market observers name “optimistic momentum” for Bitcoin’s long-term worth trajectory.

Miner exercise will have an effect on costs

This isn’t the primary time Customary Chartered has taken a bullish stance on Bitcoin. Earlier this yr, the financial institution expressed the identical sentiment relating to the upcoming U.S. election, believing it to be a significant catalyst for cryptocurrency worth developments.

On the time, it instructed that Bitcoin might even attain $150,000 by the tip of the yr if Trump returns to workplace. The financial institution believes that political elements, mixed with regulatory and financial adjustments, might present a strong basis for Bitcoin’s rise within the coming months.

Moreover, Customary Chartered maintained its view in its July outlook and acknowledged that BTC has the flexibility to the touch $120,000. The corporate cited elevated miner profitability as one of many key drivers behind its optimistic outlook, with Kendrick explaining that as Bitcoin costs soared on the time, miners had been seeing increased returns per BTC mined, which This enables them to promote fewer Bitcoins whereas sustaining money circulate.