Standard Chartered: Bitcoin has 12% upside potential before US election

In a new study, Geoff Kendrick, head of digital asset research at Standard Chartered, estimates that Bitcoin could reach $73,800 before the US presidential election in November, up 12% from current levels. To support this, Kendrick cites the changing pattern of Bitcoin's multiples (stock multiples = total assets ÷ total common shares outstanding) with MicroStrategy (MicroStrategy) stock. MicroStrategy is known for hoarding large amounts of Bitcoin, with its reserves recently reaching 252,000 coins. After trading largely in sync with Bitcoin prices (green line) throughout 2024, MicroStrategy's stock multiples (blue line) have now exploded. Kendrick says the two fundamental factors driving this premium may also push Bitcoin higher, and the gap between the two will narrow over time. The first factor is that last month there was news that BNY Mellon had obtained an exemption from SAB 121, an unpopular piece of legislation that forces traders to list the cryptocurrencies they hold on their balance sheets. Relaxed regulation is generally seen as a positive factor for Bitcoin. Secondly, the SAB 121 exemption is closely related to MicroStrategy's announcement of its plan to become a "Bitcoin bank", which will provide Bitcoin capital market tools in the future. Kendrick expects future exemptions may allow the company to earn income by lending out its Bitcoin.