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

According to a new study by Geoff Kendrick, head of digital asset research at Standard Chartered Bank, Bitcoin could reach $73,800 before the November US presidential election, a 12% increase from current levels. Kendrick cites the change in Bitcoin's multiple (multiple = total assets ÷ common stock total shares outstanding) with MicroStrategy stock to support this point. MicroStrategy is known for hoarding large amounts of Bitcoin, with reserves recently reaching 252,000 coins. After trading in relative synchronicity with the Bitcoin price (green line) throughout 2024, the MicroStrategy stock multiple (blue line) has exploded. Kendrick says two fundamental factors causing this premium could drive Bitcoin higher, and over time, the gap between the two will narrow. The first factor is news last month that BNY Mellon received an exemption from Staff Accounting Bulletin No. 121 (SAB 121), an unpopular legislation that forces traders to list the cryptocurrencies they hold on their balance sheets. Relaxing regulations is generally seen as a positive for Bitcoin. Secondly, the exemption from SAB 121 is closely related to MicroStrategy's announcement of plans to become a "Bitcoin bank," which will offer Bitcoin capital market tools in the future. Kendrick expects future exemptions to allow the company to earn income by lending Bitcoin.