Why does Standard Chartered predict that Bitcoin will surge to $100,000 before the US election?

Standard Chartered Bank predicts that Bitcoin BTC will surge to $100,000 before the US election? Why? Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered, predicts that BTC prices could surge to $100,000 ahead of the U.S. presidential election this November. Today, the editor of this website will introduce to you in detail why Standard Chartered Bank predicts that Bitcoin BTC will surge to 100,000 US dollars before the US election. I hope you like it!

Standard Chartered Bank predicts that Bitcoin will surge to $100,000 before the US election? Why?

Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered, predicts that BTC prices could surge to $100,000 ahead of the U.S. presidential election in November this year.

In an email to The Block, Kendrick elaborated on the factors driving this prediction and provided a more detailed outlook on BTC’s price trajectory.

Kendrick said: "As the U.S. election approaches, I expect the BTC price to reach $100,000. If Trump wins, the BTC price will reach $150,000 by the end of the year."

He pointed out: "The Biden administration recently showed pragmatism in approving spot ETH ETFs, but Biden's subsequent veto repealed SAB 121's efforts. So Trump is still more friendly than Biden."

Kendrick also highlighted the potential impact of the US non-farm payrolls data due tomorrow on BTC prices.

He noted: “Favorable data could trigger a new all-time high over the weekend, opening the way to $80,000 by the end of June. If the data is ‘friendly’, I expect BTC prices to hit a new all-time high over the weekend .”

The analyst reiterated his long-term price prediction that BTC will reach $150,000 by the end of the year and $200,000 by the end of 2025.

Kendrick emphasized: “It is worth noting that by the end of 2024, a price of US$150,000 will make the BTC market value join the US$3 trillion queue, following yesterday’s NVDA market value reaching US$3 trillion.”

Two months ago, Standard Chartered Bank released a research report expressing optimism about the prospects of BTC and Ethereum at the end of 2024 and beyond.

The bank’s analysts predict that BTC could reach $150,000, while Ethereum could reach $8,000. The predictions are supported by the launch of a spot BTC ETF in the United States, which has seen significant inflows.

Kendrick and Suki Cooper explained: “Rapid inflows into new spot BTC ETFs have dominated, with most inflows likely to be sticky pension-type flows.”

This emphasizes the importance of BTC Stability of investment trends.

Standard Chartered’s bullish valuation of BTC is based on three key analyses

First, drawing on the gold market’s reaction to the launch of the U.S. Gold ETF, the bank expects BTC It could rise to the $200,000 level, a 4.3x increase from the price before the ETF was launched.

Secondly, based on the current gold price, by optimizing a portfolio of 80% gold and 20% BTC, analysis shows that the level of BTC is around $190,000.

Finally, linear extrapolation based on the correlation between ETF inflows and BTC price, assuming total ETF inflows are around the midpoint of the bank’s estimate of $75 billion, BTC could reach the $250,000 level .

The bank pointed out that these analyzes all indicate that "$200,000 is the 'correct' price level for BTC at the end of 2025, and is likely to be the new midpoint of the sideways trading range by then."

"Research further shows that if ETF inflows continue to be rapid or reserve managers purchase BTC, then there is the possibility of overshooting to $250,000 at some point in 2025."

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