Geoffrey Kendrick, global head of digital assets research at Standard Chartered, has raised the alert: Bitcoin (BTC) could see a spike in volatility leading up to the U.S. presidential election.
His research indicates a cautiously optimistic sentiment among Bitcoin traders, who are preparing for potential economic and regulatory changes tied to the election.
Cautious Optimism
Current data suggests that Bitcoin’s funding rates—representing the premium paid for long or short positions—are leaning toward bullish traders. This uptick shows that traders are willing to pay extra to hold long positions, hinting at growing confidence in Bitcoin’s short-term gains.
Kendrick also notes that Bitcoin’s open interest has stabilized, showing steady investor engagement without the drastic leverage swings seen in recent months. This stability could signal balanced sentiment as traders await price shifts potentially triggered by election outcomes.
Encouragingly, recent declines in short liquidations suggest a reduced appetite for bearish positions, with traders leaning towards cautious optimism.
Kendrick believes these trends could set Bitcoin up for favorable performance, though he emphasized the importance of preparing for volatility as political events unfold.
Post-Election Outlook
In his recent report, Kendrick predicted that a Trump victory could trigger a Bitcoin rally, with a potential immediate 10% rise, possibly reaching $80,000. He also noted that a Republican-led White House and Congress might foster a more crypto-friendly regulatory environment, with Bitcoin potentially hitting $125,000 by year-end.
On the other hand, a win by Kamala Harris could create short-term uncertainty, leading to an initial price dip for Bitcoin. However, Kendrick expects this decline to be temporary as the market adapts to a steadier regulatory pace under her leadership, eventually pushing Bitcoin to a recovery around $75,000 by the year’s end, driven by broad market confidence.
Bitcoin Market Data
As of 5:58 pm UTC on Oct. 31, 2024, Bitcoin stands as the top crypto by market cap, with its price down 1.6% over the last 24 hours, bringing its market capitalization to $1.4 trillion and a 24-hour trading volume of $40.84 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the same time, the total crypto market cap is valued at $2.37 trillion, with a 24-hour volume of $86.45 billion. Bitcoin dominates with a 59.05% market share. Learn more about the crypto market