Bitcoin May Drop Below $60K: Analyst Sees Buying Chance

Geoff Kendrick, the global head of digital assets research at Standard Chartered, suggests that Bitcoin (BTC) falling below $60,000 amidst rising geopolitical issues in the Middle East could present an excellent buying opportunity.

Is Bitcoin Under $60,000 a Buying Opportunity?

As the conflict between Iran and Israel escalates, assets deemed risky, including Bitcoin, may see a decline as investors turn towards more secure options such as gold. Nonetheless, Kendrick proposes that any potential drop in digital assets like BTC should be considered a chance for acquisition.

In a recent communication, Kendrick commented:

Concerns about risks in the Middle East could push bitcoin below the $60,000 mark before the weekend. However, positions such as the $80,000 call options mentioned here, along with the connection to Trump probabilities, indicate that this dip should be taken advantage of.

Kendrick further noted a significant rise in call option open interest on Deribit, observing an increase of 1,300 BTC over the last two days for December 27 expiration contracts with an $80,000 strike price. This trend indicates that a growing number of traders are wagering on a year-end surge for BTC, suggesting a favorable market perspective for the dominant cryptocurrency.

The analyst clarified that BTC has yet to establish itself as a hedge against geopolitical instability, with gold still considered the top choice during global uncertainty. However, Bitcoin serves as a hedge against traditional financial mishaps such as bank failures or de-dollarization.

Trump’s Victory Viewed as Positive for Digital Assets

Kendrick highlighted the potential implications of the recent Iranian attacks on Israel for the forthcoming US presidential election, noting it slightly improves Trump’s odds against Kamala Harris. This assessment aligns with data from Polymarket, which estimates Trump’s chances of winning at 50%, compared to Harris’ 49%.

Labeling it an “interesting circularity for Bitcoin,” Kendrick elaborated that while geopolitical issues might temporarily drive BTC prices down, they may simultaneously bolster Trump’s chances of victory, enhancing the digital asset’s outlook following the election.

Trump is often regarded as a pro-crypto candidate; he was recently seen purchasing hamburgers in a bar in New York City, paying with Bitcoin.

Conversely, Kamala Harris, the Democratic presidential nominee, is met with some skepticism within the crypto community. The Biden administration has faced criticism for what many perceive as a crackdown on the crypto market, prompting several crypto businesses to migrate to more crypto-friendly environments like Singapore and the UAE.

Nevertheless, recent remarks by Harris on cryptocurrencies have ignited some hope. For example, she has committed to enhancing America’s competitiveness by promoting a more supportive regulatory framework for new technologies, including digital assets.

Similarly, crypto trading firm QCP Capital observed that a potential win for Harris might not be as detrimental as some crypto investors fear. At present, BTC is trading at $60,090, reflecting a 5.7% decline over the past day.