Bitrabo Editorial
Geoff Kendrick, who leads global digital assets research at Standard Chartered, believes that Bitcoin (BTC) could drop below $60,000 amid rising geopolitical unrest in the Middle East, which may present an attractive buying chance.
Is Bitcoin’s Dip Below $60,000 a Chance to Buy?
As conflicts flare up between Iran and Israel, assets considered risky, like Bitcoin, might see a decline as investors seek safer havens such as gold. However, Kendrick points out that this possible downturn in digital assets like BTC might allow for strategic purchases.
Kendrick expressed his thoughts in a recent communication:
Concerns related to the Middle East are likely to drive Bitcoin under $60,000 before the weekend. Nevertheless, the $80,000 call options showcased here and the relationship with Trump’s probabilities indicate that this drop could be a buying opportunity.
He also mentioned a notable increase in call option interest on Deribit, with 1,300 BTC added in the last two days for contracts expiring on December 27 at an $80,000 strike price. This suggests that more traders are anticipating a rally for BTC by the end of the year, reflecting a positive sentiment for the leading cryptocurrency.
Kendrick clarified that while BTC has not yet demonstrated its value as a hedge against geopolitical issues, gold remains the primary safe haven during global uncertainty. However, Bitcoin does provide a hedge against traditional financial system failures, such as bank crises or a shift away from the US dollar.
Trump’s Victory Seen as Positive for Digital Assets
Kendrick highlighted the potential repercussions of the recent Iranian assaults on Israel concerning the upcoming US presidential race, noting that this situation slightly favors Trump against Kamala Harris. According to Polymarket data, Trump has a 50% chance of winning, while Harris sits at 49%.
Kendrick described this as an “interesting circularity for Bitcoin,” suggesting that although geopolitical strife may temporarily push BTC prices down, it also enhances Trump’s chances of winning, which could positively influence the outlook for digital assets following the election.
Trump is generally viewed as a pro-cryptocurrency candidate. Recently, he was spotted purchasing hamburgers in a New York City bar using Bitcoin as payment.
On the other hand, Kamala Harris, the Democratic contender, faces skepticism from the crypto community. The Biden administration has been criticized for its approach to regulating the crypto sector, prompting many firms to relocate to more crypto-friendly nations like Singapore and the UAE.
Nonetheless, some optimism arose from Harris’s recent comments on cryptocurrencies, where she expressed intentions to boost America’s competitive edge by creating a more favorable regulatory environment for emerging technologies, including digital assets.
Similarly, the crypto trading firm QCP Capital acknowledged that a Harris win might not be as detrimental to the crypto market as some investors believe. Currently, Bitcoin is trading at $60,090, reflecting a 5.7% decline over the last 24 hours.
