Bitcoin Could Hit All-Time High Before Election, Says Standard Chartered

In Brief:

Standard Chartered forecasts Bitcoin reaching its all-time high of nearly $73,800 before the U.S. presidential election, driven by ETF inflows and rising Trump election odds.

Institutional interest and bullish derivatives positioning are fueling Bitcoin's price momentum, with potential for further gains as the election nears.

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Bitcoin Price Could Return to All-Time High Before Election: Standard Chartered

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With only three weeks until the U.S. presidential election, Bitcoin is poised to revisit its previous all-time high of nearly $73,800, according to British multinational bank Standard Chartered. Several factors are driving this potential surge, including significant inflows into Bitcoin ETFs, increased buying of BTC call options, and rising odds of Donald Trump winning the election on prediction markets like Polymarket and Kalshi.

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Standard Chartered's report highlights that net inflows into Bitcoin ETFs have surpassed $19 billion, equivalent to 315,000 BTC, as institutional interest continues to grow. Additionally, an uptick in open interest for the $80,000 call option set to expire on December 27 signals heightened bullish sentiment among traders.

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Analysts anticipate these factors will support a steady climb in Bitcoin’s price, potentially breaching the $73,800 resistance level before the election. Bitcoin is currently trading around $67,000.

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The correlation between Bitcoin and political developments is becoming more pronounced, with Trump's improving election odds bolstering the crypto market. A Trump victory is seen as favorable for digital assets, potentially driving Bitcoin higher in the near term.

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A separate report from Bernstein Research echoes this bullish outlook, noting a 14% rise in Bitcoin over the past month. Inflows into Bitcoin ETFs have significantly contributed to this momentum, with institutional demand accelerating.

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MicroStrategy, a major corporate holder of Bitcoin, has seen its stock price rise, often serving as a leading indicator of Bitcoin's strength. With plans to create Bitcoin capital market instruments, MicroStrategy's actions are resonating with investors, further boosting confidence in Bitcoin as a treasury asset.

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Standard Chartered believes the next 48 hours will be crucial in confirming Bitcoin's breakout above its downtrend, with a target of $70,000 and potential for new all-time highs as the election approaches. Bernstein also suggests that Bitcoin miners could see significant gains if Bitcoin surpasses $74,000, marking a turning point for mining profitability.

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