Is Bitcoin a Good Opportunity Right Now?

Standard Chartered views Bitcoin's recent dip below $60,000 as a typical market fluctuation, suggesting it could be a buying opportunity, according to an investor note shared with CryptoSlate on Oct. 3.

Geoffrey Kendrick, the bank’s global head of digital assets research, explained that geopolitical tensions are driving prices down, but improving odds of Donald Trump’s election in 2024 may support future Bitcoin growth.

Kendrick highlighted that Bitcoin has not acted as a geopolitical hedge like gold but has proven to be a defense against systemic financial risks, such as bank collapses or concerns over U.S. Treasury sustainability. He pointed out that Bitcoin’s behavior amid market volatility remains aligned with equity markets rather than traditional safe-haven assets.

A noteworthy aspect of Kendrick’s analysis is the influence of the upcoming U.S. elections on Bitcoin’s performance. Data from Polymarket shows Trump’s election odds improving, which, given his pro-crypto stance, is viewed as favorable for Bitcoin’s post-election prospects. While geopolitical concerns are pushing Bitcoin’s price down in the short term, Trump’s potential victory could offer longer-term support for the cryptocurrency.

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Kendrick also pointed to increased options activity on Deribit, with a notable rise in open interest for Bitcoin strike prices of $80,000 expiring by December 27. This surge indicates that traders are positioning themselves for a potential price rebound, despite near-term risks. Overall, Standard Chartered sees the current price dip as a strategic buying opportunity, anticipating ongoing volatility driven by geopolitical issues and the U.S. elections.

Alexander Zdravkov