Prediction: Bitcoin Surge Amid Presidential Race

Standard Chartered Predicts Bitcoin Surge Amid Presidential Race

Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, predicts Bitcoin could hit a new all-time high in August and reach $100,000 by the US presidential election in November.

Kendrick's forecast hinges on Joe Biden remaining in the presidential race, which he believes the market views as favorable for a Donald Trump victory. Kendrick considers Trump "bitcoin-positive" and notes a correlation between Trump's electoral prospects and Bitcoin's price.

If Biden withdraws from the race in late July, Kendrick anticipates Bitcoin prices could drop to $50,000-$55,000. He highlights August 4 as a critical date, as Ohio law requires presidential candidates to be registered by then. If Biden remains the Democratic nominee on this date, Kendrick expects him to stay in the race until November. He maintains a year-end Bitcoin price prediction of $150,000 and forecasts $200,000 by the end of 2025.

US Government Moves Millions in Seized Bitcoin to Coinbase

The US government recently transferred another chunk of Bitcoin seized from the infamous Silk Road marketplace to cryptocurrency exchange Coinbase. This transaction, valued at roughly $241 million, follows a similar transfer of $2 billion in April.

The funds, totaling 3,940 Bitcoin (BTC), originated from a government-controlled wallet believed to hold over $13 billion worth of Bitcoin. This wallet likely contains crypto seized from criminal activities.

The recent transfer wasn't a single transaction. It began with a tiny test amount of 0.001 BTC, followed by the main transfer of 1,999 BTC to Coinbase. The remaining Bitcoin was sent to another government wallet, suggesting a planned future sale.

This is the latest instance of the US government leveraging cryptocurrency exchanges to manage seized digital assets.

Bitcoin HODLing but Selling: Long-Term Holders Impact Market

Holders onto your crypto! A new report reveals long-term Bitcoin investors (LTHs) are taking profits, despite being less active traders overall.

While their daily activity only makes up 4-8% of the market, according to Glassnode, LTHs are responsible for a whopping 40% of profit-taking. This means they can significantly impact both liquidity and price stability.

The report also finds that these long-term investors tend to sell more during bull markets, contributing to the natural ups and downs of Bitcoin's price cycle.

Here's a worrying sign: the current price is lower than the average cost Bitcoin was bought at for some recent investors (those holding 1 week to 3 months). Historically, this has led to a drop in confidence and steeper price falls.

So, what does this mean for you? Keep an eye on the market and be aware that long-term holders can influence price swings.

MEME OF THE DAY