Cryptocurrency expert Geoff Kendrick from Standard Chartered believes that Bitcoin’s critical support at $60,000 is at risk due to geopolitical tensions. He argues that Bitcoin should not be considered a safe-haven asset amid ongoing global risks, particularly those related to the Middle East. While better-than-expected US jobs data delayed a potential dip below this support level, Kendrick still sees the threat looming. However, he views any potential drop in price as a buying opportunity and notes that increased activity in Bitcoin options markets could support prices.
Kendrick also points out the shifting odds in the US presidential race between Donald Trump and Kamala Harris. Trump’s chances of winning the election have recently improved, overtaking Harris by 1%. This change in odds could impact Bitcoin’s price dynamics, with a potential Trump victory seen as favorable for cryptocurrencies. Analysts anticipate that Trump’s administration would accelerate progress on pro-crypto policies, potentially pushing Bitcoin to a price target of $220K by the end of the year. On the other hand, a Harris presidency could also have a positive impact on Bitcoin, with a target of $75K, especially considering her recent public endorsement of digital assets.
In terms of market sentiment, Kendrick highlights the significant influx of Bitcoin call option positions, particularly for the 27 December expiry at an $80,000 strike price on Deribit. This growing demand for call options indicates that many traders are betting on upward price movements, which could contribute to a positive market outlook for Bitcoin. Kendrick sees this as another reason to consider buying into any potential price dips, especially as other catalysts line up in Bitcoin’s favor for an explosive Q4.
As a disclaimer, it’s important to note that cryptocurrency is a high-risk asset class, and any investment decision should be made with caution. The information provided in this article is for informational purposes only and should not be considered as investment advice. It’s crucial to conduct thorough research and consult with financial professionals before making any investment decisions in the cryptocurrency market. Overall, while geopolitical risks and shifting political dynamics may impact Bitcoin’s price in the short term, the long-term outlook remains positive with various factors aligning in favor of the cryptocurrency.
