- According to the economist at Standard Chartered, Geoff Kendrick, Bitcoins price could go to unknown territory amid macroeconomic and the election.
- Indeed, fluctuations in Bitcoin (BTC) Markets are attributed to the US presidential elections.
- Consequently, if Trump triumphs, the Bitcoin value may soar up to $125 k as it has deemed as a risky asset because of Trump’s approach to deregulation and economic development.
- Were Harris to triumph, then the best outcomes for Bitcoin come close to $75,000, focusing on regulation more, perhaps hampering Bitcoin’s prospects.
The Bitcoin (BTC) market has always shown some signs of volatility, particularly in the course of this US presidential elections. Well, if Donald Trump ends up winning what do we anticipate? Or if Kamala Harris is elected as the president, what are the possible outcomes that are expected? Adding his opinion to the forecast was recently the Standard Charterer’s Geoff Kendrick who proposed that the price of Bitcoin could even go up to unknown regions depending on the macroeconomic factors as well as the election. So what will the US election really bring to the table and what other factors that will lead to the possible bullish run of Bitcoin?
The Rate Cut by the Federal Reserve: Effects on Bitcoin
The financial markets are commonly sensitive to decisions made by organizations such as the Federal Reserve, and the recent slashing of interest rates by 50 basis points is no exception. This reduction is expected to boost digital asset such as Bitcoins in the market. But what does that mean for the cryptocurrency market? Kendrick also opined that the dominant variables that can propel the Bitcoin to new highs are macro variables that are now outcompeting the uncertainties of the US elections.
Macroeconomic Factors and the US Treasury Yield Curve
Bitcoin price is not only affected by the political situation and shifts but is rather strongly dependent on macroeconomic factors. One major indicator is the US Treasury yield curve particularly spread between short term and long term bonds yields. A deeper yield curve is, therefore, good for digital assets so says Kendrick. Although the curve has been inverted since mid 2022, it became positive again recently, which may suggest certain support for bitcoins price.
What is so special about Yield Curves?
In this case, yield curve can be viewed as a barometer to indicate the overall health of the country’s economy. In the event that short term rates are above long term rates this is an indication that there are problems within the economy in the future. However, when the curve starts to turn upward as it is doing now, this represents a more favorable climate for investment in high-gear risk such as Bitcoin.
Bitcoin Price Forecast: Trump against Harris
Well, let’s go straight to the major issue of what the Bitcoin price will be if Trump or Harris emerge as the president. Kendrick’s forecast offers two potential scenarios:
If Trump wins: Bitcoin has the potential to rise as high as $125,000. Regarding Trump we can expect that his policies will benefit risky assets such as Bitcoin because of his views on deregulation and economic growth.
If Harris wins: Bitcoin still has a chance for a powerful push up, however, its optimal results may approach $75,000 only. Thus, Harris’s policies may target regulation even more which, although should not stop Bitcoin’s growth completely, might slightly decrease its potential.
Less Than Anticipated Effect of Elections?
To be specific about elections, Kendrick illustrates that it has always created some degree of market instability and it can be lesser this year on Bitcoins. The macroeconomic factors that are influencing the exchange rate as well as those in association with global financial environment are gradually masking traditional fluctuations associated with elections.
Spot Bitcoin ETFs and Future Inflows
He also notes the prospects of more Bitcoin investments thru spot Bitcoin ETFs as we draw closer to October. These ETFs could be relaunched, and this could be the major stimulus for a rally of Bitcoin again, irrespective of the result of the upcoming elections.
Could ETFs Be the Game Changer?
Through direct investments in BTC and through providing new liquidity in the existing Bitcoin market, ETFs hold the key to the broader institutionalization of Bitcoin. This may increase the prices and consequently we should watch out for Bitcoin in the next few months for this reason.
Read Also: BTC Will Soar No Matter the US Election Outcome!
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