Bitcoin's Vulnerability to Geopolitical Strain: Standard Chartered's Take on the Market Dip
A report from Standard Chartered indicates that geopolitical tensions could lead Bitcoin to dip below $60K while advising investors to purchase during market lows.
Bitcoin is likely to weaken below $60K, but investors should buy the dip, the report said.
Standard Chartered stated that the digital asset is not a safe haven against geopolitical risks. The bank asserted that Bitcoin operates as a hedge against traditional financial issues.
The ongoing conflict in the Middle East is anticipated to influence Bitcoin's price, potentially driving it below the $60,000 mark before the weekend. Nevertheless, Standard Chartered encourages taking advantage of purchasing opportunities during dips.
"Gold is a geopolitical hedge," said Geoff Kendrick from Standard Chartered, adding that "BTC is a hedge against TradFi issues such as bank collapses or de-dollarisation/U.S. Treasury issues."
Standard Chartered also highlighted that geopolitical anxieties might depress Bitcoin's price. Additionally, the bank observed that these risks might enhance Donald Trump's chances in the upcoming U.S. election, thereby improving Bitcoin's prospects post-election.
Concluding observations suggested that options market activity, with open interest for Bitcoin's December expiry spiking in recent days, supports the bullish sentiment regarding its price movements. Furthermore, Ryan Lee from Bitget Research noted that institutional investors continue to buy digital currency at a rate comparable to the amount mined every day, reflecting persistent interest in the market despite fluctuations.
