British multinational bank Standard Chartered speculates that Bitcoin’s (BTC) price could plunge below $60,000 amid rising geopolitical tension in the Middle East.
Geoff Kendrick, Standard Chartered’s head of digital asset research, issued the forecast in a note that made the rounds on social media.
A Good Buying Opportunity
According to Kendrick, rising tensions in the Middle East could push Bitcoin’s price below $60,000 before the weekend.
Nonetheless, the analyst characterized this imminent plunge as a good buying opportunity for investors due to the spike in Donald Trump’s emergence as president.
He noted that the chances of Republican presidential candidate Donald Trump emerging victorious in next month’s election have soared recently, which makes buying Bitcoin below $60,000 a good buying opportunity.
Middle East Geopolitical Tension Wreaks Havoc on Crypto Prices
For context, the geopolitical tension in the Middle East dampened investors’ hopes of having a memorable “Uptober” experience. This month began with Iran launching multiple missile attacks on Israel, wreaking havoc in the country.
Amid fears of possible retaliation and World War III, the global financial markets, including cryptos, felt the impact of this attack as prices of various assets plummeted heavily. Bitcoin, the premier asset, which traded above $66,000 on September 27, plunged below $61,000 on October 1.
Since the incident, Bitcoin has traded between $60,000 and $62,233, and it is currently worth $61,610.
Trump Reelection Odds Soars
Notably, Kendrick forecasted that Bitcoin could fall below $60,000 before the weekend, potentially presenting a good buying opportunity for investors to purchase the asset at discounted prices as Trump’s odds in the U.S. presidential race spike.
As of yesterday, data from Polymarket showed that Trump’s odds of winning the election surged by 1%. Conversely, Trump’s opponent and vice president of the U.S., Kamala Harris, witnessed a decline of a similar proportion in the same timeframe.
Currently, Trump’s odds of winning the election are 49.6%, while Harris’ is 49.5%.
Cryptos Reaction If Trump or Harris Wins
The potential impact of Trump’s victory in the crypto market cannot be overstated. Crypto prices are expected to surge tremendously if Trump wins due to his pro-crypto stance.
Contrarily, Kendrick expects an initial slump in crypto prices if Harris emerges as the 47th U.S. president. However, the Standard Chartered exec believes the dip will still result in buy opportunities as long as investors believe her administration would introduce favorable regulations for the industry.
As reported earlier, the British multinational bank projected that Bitcoin’s price could spike to $200,000, irrespective of who wins the forthcoming presidential election.
Investors Anticipate Upward Price Movement for Bitcoin By Year-End
In the meantime, Kendrick speculates that investors will be betting on positive price movements for Bitcoin by the end of the year. This is reflected in the surge in Bitcoin call options, which allows investors to purchase the premier asset at a predetermined price and date.
Citing data from Bitcoin options exchange Deribit, Kendrick noted that call options expiring on December 27 with a strike price of $80,000 have surged by about 1,300 BTC in 48 hours.
Following the surge in Bitcoin call options, Kendrick suggested that investors are optimistic about positive price action for the premier asset by the end of this year.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
