Bitcoin
Trump’s election could be good for Bitcoin
A report from Standard Chartered warns that the growing risk of US fiscal dominance due to the potential monetization of Federal Reserve debt could drive investors towards cryptocurrencies.
In this context, a second term of the former President donald trump can benefit digital assets.
“We believe that a second Trump administration would be largely positive through a more supportive regulatory environment,” the report said.
Chartered Standard analyst Geoff Kendrick emphasized that Bitcoin could offer a valuable hedge against de-dollarization and waning confidence in US Treasury bonds.
“A steeper 2-year/10-year nominal curve, a larger increase in break-even points than in real yields, and an increase in the term premium are three likely consequences of US fiscal dominance of the Treasury curve,” he added Kendrick, highlighting Bitcoin (Bitcoin) positive correlation with this evolution.
The report noted that Trump’s previous term saw an average annual net sale of US government debt totaling $207 billion, compared to $55 billion under President Biden.
In addition to the passive benefit to Bitcoin due to dedollarizationStandard Chartered expects a second Trump administration to promote Bitcoin and digital assets through flexible regulations and the approval of US spot ETFs.
Earlier this year, Trump spoke with CNBC about cryptocurrency, showing openness to the sector and highlighting that he would not like to withdraw it. Despite not owning Bitcoin, the former president said he recognized its growing popularity.
Standard Chartered reiterated its projections for the value of Bitcoin, forecast a year-end price of $150,000 and up to $200,000 by the end of 2025.