Standard Chartered Bank Links Bitcoin Performance to Probability of U.S. Debt Default

Today Bitcoin (BTCUSD) is trading downwards losing 2.35% so far to $28,526 which sparked many relevant discussions online. According to Insider.com with reference to Standard Chartered's analyst Geoff Kendrick, Bitcoin (BTCUSD) could climb by $20,000 if a U.S. default happens. Not every crypto would act similarly, he said, with some performing more like equities. "So actually, the optimal trade would probably be long Bitcoin, short Ethereum."

Describing a U.S. default as a "low-probability, high-impact event," Geoff Kendrick, head of FX research at Standard Chartered, said it may cause Bitcoin to jump by about $20,000, representing an increase of around 70% from current levels.

But Kendrick doesn't think Bitcoin would rally in a straight line on the background of the event of a U.S. default, saying "it probably comes a bit lower on day one or day two or week." In that case, bitcoin could dip by $5,000 initially, then jump by $25,000, he projected.