Following a rate cut by the Fed, Bitcoin is expected to experience sustained growth due to a macroeconomic backdrop that offsets uncertainty from the US elections. This conclusion was reached by Standard Chartered, reports The Block.
Experts highlighted the improved cryptocurrency market conditions amid increased chances of Kamala Harris’s victory. According to Polymarket, she leads her opponent by 3%.
According to analysts, the impact of the presidential race on digital gold is less significant than in the past. They noted the leveling of the US Treasury yield curve as a recession indicator. In their view, it pointed to a reduced likelihood of an adverse scenario.
Increased investments in BTC-ETF could also support the leading cryptocurrency, experts predicted.
Standard Chartered confirmed Bitcoin targets of $125,000 in the event of Donald Trump’s victory and $75,000 if he loses to Harris.
Obstacles to Growth
CryptoQuant pointed out a reduction in the supply of coins held by speculators to a 2012 low. Such metric dynamics can be interpreted as a lack of “fresh demand,” which may hinder the leading cryptocurrency’s exit from the current price range, analysts explained.
“Historically, Bitcoin reaches new highs as new holders buy from hodlers. This is what happened during bull cycles,” the report states.
The Strength of Bitcoin
The dominance of digital gold reached 54.9%, the highest level since April 2021. A new mid-term high was recorded by Kaiko.
Experts noted the predominance of Bitcoin purchases and sales of the five largest altcoins by market capitalization on American platforms based on the CVD indicator (Cumulative Volume Delta).
Kaiko noted that the launch of BTC-ETF further strengthened digital gold’s position as an investment asset. The rest of the cryptocurrency market continues to carry a higher risk premium, facing greater volatility due to an uncertain macroeconomic environment.
Back in September, former BitMEX CEO Arthur Hayes noted the risks of a decline in stocks and other risky assets a few days after the Fed meeting on September 18. The expert expressed confidence in the imminent start of a bull cycle as monetary policy continues to ease.
WeRate co-founder Quinten François predicted the start of a new bull run in the first decade of October based on historical cycles.
Earlier, investor and Okse co-founder known as Elja identified “explosive movement” signals on the leading cryptocurrency’s chart, projecting a range of $100,000-150,000 by Q1 2025.