Standard Chartered Bitcoin: Banking Giant's Crypto Move

Standard Chartered, a well-established banking giant, has made a significant move into the world of cryptocurrency with its foray into Bitcoin.

The bank's decision to enter the Bitcoin market was likely influenced by the growing popularity and acceptance of cryptocurrency globally.

In 2018, Standard Chartered launched a blockchain-based platform to facilitate trade finance, demonstrating its commitment to exploring the potential of distributed ledger technology.

This move into cryptocurrency and blockchain technology positions Standard Chartered as a leader in the financial services industry, ready to adapt to the changing landscape of digital payments and transactions.

Standard Chartered, a British multinational bank, has a digital assets researcher named Geoff Kendrick who thinks Bitcoin will drop further.

Kendrick wrote that Bitcoin's price decline was triggered by the announcement of Scott Bessent as the new U.S. Treasury secretary.

Bessent is a hedge fund manager considered a fiscal conservative by Wall Street, which could lead to more sensible monetary policy.

In the short term, Bitcoin's rally may slow because one of its core uses is to hedge against traditional finance issues, particularly those related to the banking sector or Treasury.

Standard Chartered's digital assets researcher Geoff Kendrick believes that Bitcoin will rally next year. He predicts that the coin will drop to as low as $88,700 due to the new Treasury secretary, Scott Bessent, being a fiscal conservative.

The appointment of Bessent could lead to more sensible monetary policy, especially when it comes to tariffs, which could reduce inflation. This, in turn, may cause investors to lose interest in Bitcoin as a hedge against inflation.

Bitcoin was on a wild run following Donald Trump's election victory, hitting a new all-time high of $99,645. However, it stopped short of $100,000 and has dropped fast this week.

Kendrick believes that despite the short-term decline, Bitcoin will continue to rise in the long-term. He predicts that it will touch $125,000 per coin by the end of this year and a target of $200,000 by the end of 2025 is still very possible.

In fact, Kendrick thinks that a Trump victory would be positive for Bitcoin, as it would lead to deregulation, tax cuts, and support for the digital asset industry.

Standard Chartered is launching a trading desk for Bitcoin and Ethereum, marking a significant pivot toward digital assets for the bank.

This move positions Standard Chartered as one of the pioneering global banks to embrace spot cryptocurrency trading.

The crypto desk is nearing operational readiness and will be managed from London, becoming an integral component of the bank's foreign exchange (FX) trading division.

Standard Chartered has investments in two cryptocurrency companies, Zodia Custody and Zodia Markets, which provide services ranging from custody to over-the-counter trading.

This signals the bank's recognition of the growing importance of cryptocurrencies on the global financial landscape.

Standard Chartered is one of several prominent banks expanding its tentacles into cryptocurrency as institutional use grows.

Standard Chartered is advising investors to buy Bitcoin when it falls below $60,000. According to the bank's Global Head of Digital Asset Research, Geoff Kendrick, this is a key buying opportunity.

The bank notes that Bitcoin's potential as a haven asset should not be discounted. It can be a good hedge against potential bank collapses, de-dollarization, and US Treasury concerns.

Risk concerns related to the Middle East may push Bitcoin's price below $60,000 before the weekend. This could be a temporary dip, as there has long been an expectation that the dip to start October would be temporary.

Bitcoin's potential to defend against impending US economic concerns is also highlighted. With recessionary fears and debt figures rising, Bitcoin could be a monumental player in the coming months.

Geoff Kendrick notes that open interest in BTC options shows a circulatory that proves "the dip should be bought into." This suggests that investors are confident in Bitcoin's potential for growth.

Here are the key points to consider:

The Basel rules have a significant impact on how banks interact with Bitcoin. The rules impose a 1250% risk weighting on cryptocurrencies, making it unattractive for banks to be exposed to them.

However, it's worth noting that some hedging is allowed for a small group of prominent cryptocurrencies. The risk weighting only applies to the net holdings, not the entire position.

Banks must work with regulators to demonstrate that the crypto-asset meets certain criteria to qualify for hedging. This process can be time-consuming and may be directly linked to the Basel hedging rules.

Only 65% of the hedging position can be netted, and there are other restrictions in place.