Standard Chartered Bank Says Bitcoin Will See More Price Increases as US Election Closes In

Standard Chartered analyst Geoff Kendrick, says Bitcoin Price will Increase as US Election Closes In. Kendrick notes that former President Donald Trump now holds a 56.9% chance of winning the presidency in November, according to Polymarket, his highest probability since Joe Biden withdrew from the Democratic race.

The digital asset market, particularly Bitcoin, experienced a volatile morning on Tuesday, echoing growing concerns about the potential for a Republican sweep in the upcoming US elections. The price of Bitcoin surged to a near three-month high of $67,800 before plummeting back to the $65,000 level, ultimately settling at $65,500, down 0.6% for the day.

Adding to the potential for market upheaval, Kendrick emphasizes the growing likelihood of a GOP sweep of Congress. His calculations suggest a 70% chance of a Republican-led House and Senate should Trump win the presidency.

While Bitcoin has seen gradual gains over the past few weeks, the sudden surge and subsequent decline on Tuesday resulted in over $127 million in liquidated leveraged bets. This liquidation occurred as traders lacked sufficient funds to maintain their positions, leading to the forced closure of both bullish and bearish trades, causing a brief spike and plunge in prices.

Short-term Holders Benefit from Bitcoin Price Surge

The recent surge in Bitcoin’s price, surpassing the $67,000 mark, has brought a welcome reprieve for short-term holders. This upward trend has shifted many traders from a position of loss to profit, with data revealing a significant surge in profitable holdings.

According to Into The Cryptoverse, as Bitcoin reached $66,870 on October 16, only 8.5% of investors held their assets at a loss. This translates to a staggering 91.5% of Bitcoin’s total supply currently sitting in profit.

While this influx of profit is positive for many holders, it often acts as a signal of a potentially overheated market, hinting at the possibility of a correction. The influx of profit-taking could lead to price pullbacks in the coming days as traders capitalize on their gains.

Technically, Bitcoin faces a significant resistance level at $68,000. This level proved formidable in July, halting Bitcoin’s ascent on July 29th and triggering a 27% decline, bottoming out at $49,577.

Market analysts, like Kendrick, caution that bears are likely to defend this price level once again. Should Bitcoin bulls fail to break through this resistance, the price could experience a downward correction. Liquidations of long positions could further exacerbate this decline, potentially pushing the price towards the $61,000 mark.