Standard Chartered’s Optimistic Outlook for Bitcoin

Standard Chartered’s global head of digital assets research has highlighted several factors supporting bitcoin’s price in the coming months.

Economic Indicators

Kendrick noted that following the U.S. Federal Reserve’s recent cut to the fed funds rate, long-term borrowing costs for U.S. Treasury notes are higher than short-term borrowing. This often indicates optimism about future economic growth, creating a favorable environment for investments, including bitcoin.

“There are a number of drivers to watch to indicate a topside breakout in bitcoin,” Kendrick mentioned in an email to The Block. “After the U.S. Federal Reserve cut rates, it was the turn of a steeper yield curve helping, and this has continued this week too, with 2-year and 10-year U.S. Treasury notes now around plus 21 basis points.”

Derivatives Market Trends

Kendrick also pointed to developments in the derivatives market to support his optimistic outlook for bitcoin. New topside bitcoin calls have been added for the December 27 options expiry, mostly around the $100,000 strike price.

He commented that the increase in open interest in top-side bitcoin options is accelerating beyond the approximately 6% rise in the digital asset’s price over the past week. The notable growth in open interest at the $100,000 strike indicates that other factors influence derivatives traders’ decisions.

Political Influences

Kendrick highlighted Vice President Kamala Harris’ recent remarks at a New York fundraising event as a key market influence. On September 22, she expressed her commitment to supporting emerging technologies, including digital assets, and emphasized innovation while ensuring consumer and investor protection.

“The most likely new factor, from a timing perspective, is Vice President Harris’ comments where she said she would encourage crypto businesses. These comments suggest either outcome on November 5 will end up being bitcoin positive,” he concluded.