Bitcoin’s Rising Appeal Among Billionaires
Bitcoin (CRYPTO: BTC) has long been known for its volatility, but this hasn’t deterred billionaires and major investors from betting heavily on the world’s largest cryptocurrency. Recently, Michael Saylor’s company, MicroStrategy Incorporated, has acquired a substantial 1.17% of all Bitcoin in circulation. Other prominent figures, including Elon Musk and the Winklevoss twins, have also made significant Bitcoin investments.
This bullish sentiment aligns with a new forecast from a Wall Street analyst, who predicts Bitcoin could soar by 116% and reach $125,000 by the end of the year.
Election Impact on Bitcoin
According to a report from Standard Chartered, Bitcoin is expected to hit new highs by December. The investment bank analyzed various economic and political factors to arrive at this forecast.
Geoff Kendrick, the global head of digital assets research at Standard Chartered, noted that the presidential election’s outcome may have less impact on Bitcoin than anticipated. Kendrick suggests that progress on deregulating digital assets, particularly the repeal of SAB 121—which imposes strict accounting rules on banks’ digital asset holdings—will continue regardless of who wins the election.
However, Kendrick believes that Bitcoin’s deregulation might accelerate under a Trump presidency compared to a Harris administration. Despite this, he anticipates that deregulation will occur eventually under either candidate. Kendrick predicts that a Harris win could initially decrease Bitcoin’s price, but this decline would be temporary. His price targets are $125,000 if Trump wins and $75,000 if Harris wins.
Economic Factors Influencing Bitcoin
Beyond the election, Kendrick expects Bitcoin to gain momentum as the yield curve begins to steepen, reversing the inversion that has persisted for over two years. Historically, Bitcoin has thrived in environments where interest rates are falling, leading investors to seek riskier assets as Treasury yields diminish.
Additionally, lower interest rates often result in a weaker U.S. dollar, which benefits Bitcoin as it is seen as an alternative to traditional currencies.
Bitcoin’s Price Predictions
Predicting Bitcoin’s price can be challenging, especially compared to more stable blue-chip stocks. The cryptocurrency’s inherent volatility makes precise forecasts difficult. For instance, while some billionaires, like Saylor, have set ambitious long-term targets—Saylor has suggested Bitcoin could reach $13 million by 2045—these predictions can be quite speculative.
Wall Street’s price targets, typically set for a 12 to 18-month horizon, offer a more realistic perspective. While it’s uncertain whether Bitcoin will hit $75,000 or $125,000 by the end of the year, the cryptocurrency’s long-term potential remains promising for investors considering adding it to their portfolios.
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