Bitcoin plummeted today, falling below the $70,000 mark. Standard Chartered warned that as the US elections approach and market uncertainty increases, many traders would choose to reduce their positions, which not only greatly reduces the likelihood of 'Bitcoin reaching a new high before the elections' but may also trigger market fluctuations and price declines.
As of the time of writing, Bitcoin is fluctuating above $69,000, with a decline of over 4% in the past 24 hours.
Geoff Kendrick, the global head of digital asset research at Standard Chartered, confidently stated last week, 'Bitcoin will soar to a new high on the day of the US elections,' but he now believes that the settlement pressure from positions held before the elections will lead to a correction in Bitcoin's price. He pointed out in Thursday's report:
When election day arrives, Bitcoin prices are more likely to fall below $73,000 rather than break upwards.
Market fluctuations may further intensify
As election day approaches, Geoff Kendrick predicts that the 7-day Bitcoin options premium compared to the 30-day contracts' premium may continue to rise, indicating that market uncertainty and potential price volatility are increasing.
Standard Chartered analysis pointed out that this phenomenon is similar to the market reaction before the approval of the Bitcoin spot ETF at the beginning of January this year, when investors' sentiment was also very sensitive.
Geoff Kendrick further stated that the volatility predictions in the options market for some known events (such as ETF listings) have closely matched the actual trends, and this will also apply to the upcoming US elections.
Geoff Kendrick also proposed another possible scenario: If the Republican Party wins big in the elections, not only is there a chance to push Bitcoin to the year-end target price of $125,000, but it may also trigger a new wave of competition in the altcoin market. He emphasized:
If the Republican Party wins, it is a significant positive for Solana (SOL).
"Will Bitcoin miss the peak before the US elections? Standard Chartered warns: Bitcoin may pull back, and market fluctuations are inevitable" This article was first published on (Blockcast).
