Bitcoin enthusiasts have been anticipating another all-time high for over six months. Standard Chartered Bank suggests this might occur in the coming weeks. According to Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, Bitcoin could reach $73,800, marking a 12% increase from current levels before the U.S. presidential election in November.
Kendrick supports this forecast by analyzing the trading pattern between Bitcoin and MicroStrategy (MSTR, Financial) stock multiples, a company known for its substantial Bitcoin holdings, recently totaling 252,000 BTC. The company's stock multiple has surged in correlation with Bitcoin prices, indicating potential upward movement. The gaps between these multiples are expected to narrow over time, driven by two key factors.
Firstly, BNY Mellon was recently granted an exemption from the problematic Staff Accounting Bulletin (SAB 121), which required traders to list held cryptocurrencies on their balance sheets. This easing of regulations is generally positive for Bitcoin.
Secondly, this exemption aligns with MicroStrategy's plan to become a "Bitcoin bank," aiming to offer Bitcoin capital market tools in the future. Kendrick believes future exemptions could enable the company to generate income by lending Bitcoin.
Kendrick emphasizes that the link between these factors suggests that as the digital asset ecosystem becomes more legitimate and accessible, MicroStrategy's stock multiple is likely to rise. He notes that the U.S. election outcome is secondary to these bullish forces, though either a Trump or Harris win bodes well for the crypto industry.
Previously, Kendrick has indicated that both presidential candidates could benefit cryptocurrencies in the long run, with a Trump victory potentially propelling Bitcoin prices to $125,000 by the end of 2024.
