Golden Finance reported that in a new study, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, estimated that Bitcoin could reach $73,800 before the US presidential election in November, up 12% from its current level. To support this, Kendrick cited the changing pattern of Bitcoin and MicroStrategy's stock multiples (stock multiples = total assets ÷ total common stock). MicroStrategy is known for hoarding a large amount of Bitcoin, with its reserves recently reaching 252,000. After trading relatively synchronously with the Bitcoin price (green line) throughout 2024, the MicroStrategy stock multiple (blue line) has exploded. Kendrick said that the two fundamental factors that caused this premium could push Bitcoin higher, and the gap between the two will narrow over time. The first factor was the news last month that BNY Mellon had obtained an exemption from (Staff Accounting Bulletin No. 121) (SAB 121), an unpopular legislation that forces dealers to list cryptocurrency holdings on their balance sheets. And relaxed regulation is generally considered a favorable factor for Bitcoin. Second, the exemption (Staff Accounting Bulletin No. 121) is closely tied to MicroStrategy’s announced plans to become a “Bitcoin bank” that would offer Bitcoin capital market instruments in the future. Kendrick expects that future exemptions could allow the company to earn income by lending out Bitcoin.

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