A recent report from Standard Chartered highlights the potential impact of a second term for former President Donald Trump on the cryptocurrency market, particularly Bitcoin.
According to the report, the growing risk of U.S. fiscal dominance, fueled by the Federal Reserve’s potential debt monetization, could drive investors towards cryptocurrencies. Analysts at Standard Chartered believe that a second Trump administration might offer a more favorable regulatory environment for digital assets, which could benefit Bitcoin.
Geoff Kendrick, an analyst at Standard Chartered, emphasized Bitcoin’s role as a hedge against de-dollarization and diminishing confidence in U.S. Treasuries. He pointed out that Bitcoin has shown a positive correlation with certain developments, such as a steeper nominal 2-year/10-year curve and an increase in term premium, which are potential consequences of U.S. fiscal dominance.
The report highlighted that during Trump’s previous term, there was an average annual net selling of U.S. government debt amounting to $207 billion, compared to $55 billion under President Biden. Besides, Standard Chartered anticipates that a second Trump administration would likely support Bitcoin and digital assets through relaxed regulations and the approval of U.S. spot ETFs.
Earlier discussions by Trump on cryptocurrency, where he expressed openness to the sector and acknowledged its increasing popularity, further support the idea of a positive stance towards Bitcoin. Although he does not own any Bitcoin himself, Trump’s remarks indicate a level of acceptance and interest in the digital asset space.
Standard Chartered maintained its bullish outlook on Bitcoin’s price, projecting a year-end target of $150,000 and potentially reaching $200,000 by the end of 2025.
Summary Review: Standard Chartered’s report suggests that a potential re-election of former President Donald Trump could have a positive impact on Bitcoin and the broader cryptocurrency market. The report highlights the growing risk of U.S. fiscal dominance and the Federal Reserve’s potential debt monetization as factors that could drive investors towards cryptocurrencies like Bitcoin. Analysts at Standard Chartered believe that a second Trump administration could offer a more supportive regulatory environment for digital assets, potentially leading to relaxed regulations and the approval of U.S. spot ETFs. This, coupled with Trump’s previous openness to cryptocurrency and its increasing popularity, could further boost investor confidence in Bitcoin. Overall, Standard Chartered maintains a bullish outlook on Bitcoin’s price, projecting a target of $150,000 by the end of the year and potentially reaching $200,000 by 2025.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
