Bitcoin Not Safe In Geopolitical Tension But 'Buy the Dip' Says Standard Chartered

Bitcoin (BTC) is expected to dip below the $60,000 mark by the weekend due to ongoing geopolitical tensions in the Middle East: Standard Chartered report.

Oct 3, 2024 - 23:39
Oct 3, 2024 - 23:39
Bitcoin Not Safe In Geopolitical Tension But 'Buy the Dip' Says Standard Chartered
Bitcoin is Not Safe In Geopolitical Tension - Coinccino

Bitcoin (BTC) is expected to dip below the $60,000 mark by the weekend due to ongoing geopolitical tensions in the Middle East, according to a Thursday report from Standard Chartered. Despite this downward trend, the investment bank sees the drop as a buying opportunity for investors.

While bitcoin is often touted as a hedge against financial instability, the bank's global head of digital assets research, Geoff Kendrick, highlighted that the cryptocurrency isn't a reliable safe haven from geopolitical risks. “Gold serves as a geopolitical hedge,” Kendrick stated, pointing out that bitcoin's primary hedge comes into play during traditional finance (TradFi) issues, such as bank failures or concerns about U.S. Treasury stability and de-dollarization.

The report also suggested that the geopolitical turmoil is impacting not only bitcoin’s price but also the U.S. political landscape. Standard Chartered noted that the current situation may be boosting Donald Trump’s odds of winning the upcoming U.S. election, which could, in turn, improve bitcoin's prospects post-election.

Additionally, market data supports a growing interest in bitcoin. Open interest in bitcoin's December expiry options recently surged to 80,000 contracts, signaling optimism for the asset’s future performance.

Reinforcing this positive outlook, Ryan Lee, chief analyst at Bitget Research, mentioned that institutional investors remain bullish. "Even amid the market downturn, institutions are buying digital currencies at or above the daily mining rate," Lee noted.

At the time of publication, bitcoin was trading at approximately $60,500, down 0.4% on the day, while the broader crypto market index, CoinDesk 20 (CD20), showed a 5.5% drop.

Marsha J Marsha is a crypto enthusiast and seasoned investor. As a crypto journalist, Marsha brings her excellent research and writing skills to Coinccino while accelerating its reach to thousands of users.