With tensions escalating in the Middle East, some analysts believe the cryptocurrency market could be impacted. However, according to a specialist, this would be a fantastic investment opportunity, especially if Donald Trump were to win the American presidential elections.
Geopolitical tensions in the Middle East: towards a drop in BTC this weekend?
For Geoff Kendrick, global director of digital assets research for Standard Chartered, the current geopolitical situation would suggest a drop in the price of Bitcoin (BTC) in the coming days.
At present, the various tensions in the Middle East with Israeli bombings on Beirut, ground incursions into southern Lebanon and Iranian air attacks on Israel, crystallize the market. According to Geoff Kendrick, this situation will have an impact on the price of Bitcoin :
Concerns about Middle East risks
appear destined to push Bitcoin below $60,000 during the weekend.
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However, the analyst insists that investors have every interest in considering this possible decline as a buying opportunity. Indeed, Geoff Kendrick noticed that Donald Trump's chances of victory facing Kamala Harris in the US presidential elections scheduled for November 5 increased slightly on Polymarket.
While the current vice-president of the United States has been ahead of her Republican rival by a short head for several weeks, the trend has reversed on the decentralized prediction market platform. Donald Trump's chances of victory increased by about 1% while Kamala Harris' chances decreased.
In short, the Democratic candidate's chances of winning the elections now stand at 49%. while Trump's rose to 50%.
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Will the result of the US presidential elections play a role on the price of BTC?
For Geoff Kendrick, this change in electoral trend also has an impact on the price of BTCsuggesting an increase in the coming months in the event of Donald Trump's victory:
This creates an interesting circularity for Bitcoin. Geopolitical concerns may depress prices, but those same concerns appear to boost Trump's chances, potentially improving Bitcoin's post-election outlook.
In recent months, many analysts believe that a victory for Donald Trump in the American elections would have a favorable impact on the price of cryptocurrencies. Conversely, a victory for Kamala Harris would have a negative impact on the price of Bitcoin according to these same analysts.
Standard Chartered's Global Head of Digital Asset Research shares this opinion, but remains more nuanced, suggesting great opportunities for investors :
A Harris victory would likely trigger an initial drop in prices,
but we expect investors to buy the dips as the market recognizes that progress on the regulatory front is still to come.
👉 On the same subject – Bitcoin and gold: safe havens in the face of escalating geopolitical tensions, according to JP Morgan
Finally, the analyst highlighted that recent market activity showed a significant influx of call options positions on Bitcoin. This growing demand for call options suggests that many traders are betting on upward price movements, which may contribute to a positive market outlook for Bitcoin.
“ The amount of open interest on the call option for the December 27 expiration at a strike price of $80,000 on Derebit jumped 1,300 Bitcoins in the last two days » he concludes.
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Source: The Block
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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