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Bitcoin’s Future Outlook Amid U.S. Election: Predictions and Market Insights
Explore the future of Bitcoin as we delve into predictions and market insights amid the U.S. election. Understand how political shifts could impact cryptocurrency trends and investment strategies in this comprehensive analysis.
Bitcoin’s Future Outlook Amid U.S. Election
Bitcoin (BTC), recognized as the largest cryptocurrency by market capitalization, is projected to reach new all-time highs by the end of the year, regardless of the outcome of the U.S. presidential election scheduled for November. This insight comes from a recent report by investment bank Standard Chartered (STAN), which has resumed its coverage of the cryptocurrency sector.
While the results of the U.S. election hold significance for the landscape of digital assets, Standard Chartered emphasizes that the implications are less critical than they were during Biden’s candidacy. The report suggests that the market’s concerns may be overstated.
According to the findings, Bitcoin could soar to approximately $125,000 if former President Donald Trump secures a victory, while a win for Vice President Kamala Harris may see the cryptocurrency reach around $75,000. The bank’s analysis identifies several positive factors that are likely to influence the crypto market.
- Regulatory Developments: There is an optimistic outlook for the relaxation of regulations affecting digital assets. Notably, the potential repeal of SAB 121, which imposes strict accounting requirements on banks’ digital asset holdings, is anticipated to progress by 2025, regardless of who occupies the White House. Geoff Kendrick, the global head of digital assets research at Standard Chartered, notes that while advancements may be slower under a Harris presidency, they will still occur.
- Market Momentum: The report highlights a re-steepening of the U.S. Treasury curve, which is contributing to positive momentum for Bitcoin.
It is expected that there may be an initial sell-off of Bitcoin should Harris emerge victorious; however, Kendrick predicts that any downturn will be quickly countered as investors recognize the ongoing potential for regulatory progress, albeit at a more gradual pace. Additionally, other positive catalysts are likely to take precedence, supporting the cryptocurrency’s value.