Standard Chartered predicts potential positive impact of Trump’s presidency on Bitcoin
A report from Standard Chartered has raised concerns about the growing risk of U.S. fiscal dominance and its potential impact on the cryptocurrency market. The report suggests that if the Federal Reserve were to engage in debt monetization, it could drive investors towards cryptocurrencies. Interestingly, the report also suggests that a second term under former President Donald Trump could be beneficial for digital assets. According to the report, a second Trump administration would likely create a more supportive regulatory environment for cryptocurrencies, making them more attractive to investors. In particular, Bitcoin could serve as a valuable hedge against de-dollarization and waning confidence in U.S. Treasuries. Standard Chartered analyst Geoff Kendrick highlights the positive correlation between Bitcoin and the consequences of U.S. fiscal dominance on the Treasury curve. The report also notes that during Trump’s previous term, there was an average annual net selling of U.S. government debt, which could have indirectly benefited Bitcoin. Moreover, if Trump were to serve a second term, his administration would likely promote Bitcoin and digital assets through relaxed regulations and the approval of U.S. spot ETFs. Earlier this year, Trump spoke openly about cryptocurrency, expressing his support for the sector and acknowledging its increasing popularity. Standard Chartered reiterates its optimistic projections for Bitcoin’s price, forecasting a year-end price of $150,000 and up to $200,000 by the end of 2025.
