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Read more: Middle East Tension Causes Panic in the Markets in the Short Term
Per Decrypt reported, Kendrick, in an analysis on Thursday, attributed much of the reason for this observation to the ongoing unrest, notably missile attacks by Iran against Israel, which have taken their toll on crypto and stock markets, now in significant declines.
The Standard Chartered exec noted that Bitcoin is doing so, too, with it being down over 5% this week, which is in line with sustained investor uncertainty after those events. Yet he countered that Bitcoin should not be used merely as insurance against geopolitical instability but more so for problems in the traditional financial system, such as bank collapses and concerns about U.S. Treasury sustainability.
Kendrick cited a correlation between a heightening political suspense and volatility in the U.S. presidential election, where the rising likelihood of Donald Trump‘s win could give a fillip to Bitcoin post-election. The latest data from Polymarket showed Trump’s probability of winning at 50%, up from Kamala Harris‘s 49%, which Kendrick thinks cushions Bitcoin’s chances over the election.
The action has also perked up in options trading, with open interest for the December Bitcoin options surging to 80,000 contracts. The development indicates an increase in investor appetite across more market involvement, at a time when volatility continues to spearhead price action.
While the Middle East conflict has pushed Bitcoin’s prices down, Kendrick relayed the importance of considering the asset’s longer-term potential. In substance, even while prices may well be vulnerable in the near term, the fundamental drivers of Bitcoin were still there, particularly with traditional financial markets now coming under much more questionable scrutiny and uncertainty.
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