Standard Chartered Sees Bitcoin Buying Opportunity as BTC Declines

Bitcoin (BTC) is at risk of dipping below its current price of $60,000 soon due to increasing geopolitical tensions in the Middle East.

Experts at the British multinational bank Standard Chartered noted in a report reviewed by The Block that the likelihood of BTC experiencing further declines is considerable; however, they recommend that investors view any potential drop as an opportunity to bolster their digital asset positions.

BTC Likely to Drop Below $60K

Recently, Bitcoin has already experienced a decline of nearly $4,000, falling from $64,000 to just above $60,000, triggered by Iran’s missile attack on Israel at the start of the month. Since then, the cryptocurrency has fluctuated between $60,000 and $62,000, with a current valuation of $60,500 at the time of this writing.

According to the insights shared by Standard Chartered’s global head of digital assets research, Geoff Kendrick, BTC’s anticipated drop could ultimately lead to better returns for investors, especially with the Republican presidential candidate, Donald Trump, having a strong chance of winning the upcoming elections.

Given Trump’s favorable stance towards cryptocurrencies, analysts predict that BTC could witness a substantial price surge if he secures the election victory. In contrast, the value of the asset is expected to decrease should the Democratic candidate Kamala Harris emerge as the winner.

“A Harris victory would likely lead to a short-term price fallback, but we anticipate investors to seize the opportunity to buy on dips as the market acknowledges that regulatory advancements will still be on the horizon,” Kendrick commented.

Surge in BTC Call Options

Data from the decentralized prediction platform Polymarket indicates that Trump’s chances of winning the election have risen by 1%, while those of Harris have diminished by the same margin.

“This creates an interesting dynamic for bitcoin. Geopolitical issues may drive prices down, but these very issues appear to enhance Trump’s likelihood of winning, potentially benefiting bitcoin’s outlook after the elections,” the analyst remarked.

As the impact of Middle Eastern tensions continues to unfold in the market, there is a noticeable increase in demand for bitcoin call options. Call options are contracts that give investors the right to purchase assets at predetermined prices on or before a specified date.

In the past two days, open interest for bitcoin call options set to expire on December 27, with an $80,000 strike price, has surged by 1,300 BTC on the prominent crypto options exchange Deribit. The increasing interest in BTC call options suggests that market participants are betting on higher price movements, and Kendrick notes that this could enhance bullish sentiment towards the asset.