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

Odaily Planet Daily Report: In a new study, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, estimates that Bitcoin could reach $73,800 before the US presidential election in November, a 12% increase from current levels. To support this, Kendrick cites the changing pattern of the Bitcoin-to-MicroStrategy (MicroStrategy) stock multiple (stock multiple = total assets ÷ total common shares outstanding). MicroStrategy is known for hoarding large amounts of Bitcoin, with its reserves recently reaching 252,000 coins. After trading in sync with the Bitcoin price (green line) throughout 2024, the MicroStrategy stock multiple (blue line) has already exploded. Kendrick says that the two underlying 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 legislation that forced traders to list the cryptocurrencies they hold on their balance sheets. Relaxed regulation is generally seen as a favorable factor for Bitcoin. Secondly, the SAB 121 exemption is closely related to MicroStrategy's announced plan to become a "Bitcoin bank", which will provide Bitcoin capital market tools in the future. Kendrick expects that future exemptions may allow the company to earn income by lending out Bitcoin.