Standard Chartered shows a good buying opportunity when BTC falls to $60k

Due to the escalating geopolitical tensions in the Middle East, Bitcoin (BTC) is at risk of falling below the current level of $60,000 in the coming hours.

Analysts at the British multinational bank Standard Chartered said in a note received by The Block that BTC is likely to decline further. However, investors should consider the downturn as an opportunity to increase their digital assets.

BTC will fall below $60k

Following Iran's missile attack on Israel on the first day of the month, Bitcoin fell by $4,000 from $64,000 to just $60,000. The cryptocurrency has remained between $60,000 and $62,000 since then, and at the time of writing it was valued at $60,500.

According to a report led by Geoff Kendrick, head of global digital assets research at Standard Chartered, a fall in bitcoin could bring huge gains for investors as US Republican presidential candidate Donald Trump is more likely to win the upcoming election.

Due to Trump's pro-crypto stance, analysts expect BTC to have a big rally if he emerges victorious in the election. Conversely, if the Democratic candidate Kamala Harris wins, the property may fall.

“Harris's victory may cause an initial drop in prices, but we expect investors to buy the dips as the market realizes that the improvement in control is still to come,” Kendrick said.

BTC call options are increasing.

According to data from the decentralized forecasting platform Polymarket, Trump's chances of winning the election have increased by 1 percentage point, while Harris's has decreased by the same percentage.

“This creates an interesting circularity for Bitcoin. Geopolitical concerns may depress prices, but these concerns seem to increase Trump's chances, which could improve Bitcoin's post-election outlook,” the analyst added.

While the impact of tensions in the Middle East continues to play out in the market, bitcoin call options are seeing increasing demand. Call options are contracts that allow investors to buy assets at agreed prices on or before a certain date.

In two days, open interest on Bitcoin call options for the December 27 expiration at $80,000 increased by 1,300 BTC. The rising number of BTC call options indicates that market participants are betting on upward price movements, and according to Kendrick, this could bolster optimism for the asset.