Bitcoin recently showed significant momentum, reaching its highest level since July, briefly touching $67,900 and recovering by 7%.
This rise follows a drop to $58,900 late last week, further fueling bullish sentiment among investors about the cryptocurrency’s potential to reach new heights before the year is out.
However, according to research by multinational bank Standard Chartered, this optimistic outlook could be realized even sooner than expected.
Key Factors Behind BTC Price Rise
Geoff Kendrick, head of digital asset research at Standard Chartered, estimates that the price of Bitcoin could hit $73,800 before the US presidential election on November 5, representing a 10% increase from current levels.
This is particularly relevant in relation to one of the largest public holders of BTC, MicroStrategy, which recently increased its holdings to 252,000 BTC, led by the vision of its co-founder and well-known Bitcoin enthusiast Michael Saylor.
Historically, MicroStrategy and Bitcoin have traded in sync; however, Kendrick notes that MicroStrategy shares have outperformed Bitcoin, suggesting a developing premium that could push Bitcoin prices higher in the coming days.
Two key factors underpin this optimistic outlook.
The first is the news, reported by Bitcoinist last month, that BNY Mellon has received an exemption from SAB 121, a regulation that requires financial institutions to list cryptocurrencies on their balance sheets.
Kendrick explains that such regulatory relief is often seen as a positive sign for the broader Bitcoin market, potentially encouraging wider institutional adoption and therefore acting as a bullish catalyst for the ongoing rally seen in recent days.
The second factor relates to MicroStrategy's stated intention to evolve into a Bitcoin bank, which would involve offering capital market instruments in Bitcoin.
Kendrick believes future exemptions could allow the company to generate income by lending out its Bitcoin holdings.
The analyst argues that as the digital asset ecosystem gains legitimacy and accessibility, MicroStrategy's valuation should increase, further benefiting the price of BTC in the long term.
Both Presidential Candidates Could Boost Bitcoin Price
Regarding the upcoming presidential election, Kendrick considers the outcome as secondary to these fundamental factors.
He argues that regardless of whether Donald Trump or Kamala Harris wins, the broader digital asset ecosystem is increasingly poised to go mainstream.
While Kendrick has previously suggested that a Trump presidency would be the most beneficial scenario for BTC, with notable proposals for the industry including the creation of a Bitcoin reserve for the country, he maintains that both candidates could positively impact the asset. in the long term.
In fact, Kendrick projects that if Trump regains the presidency, the price of Bitcoin could rise to as high as $125,000 by the end of 2024.
At the time of writing, BTC is trading at $67,000, holding on to some of its 2% losses over the 24-hour period, despite briefly retracing before reaching $68,000.
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