Regulation
Donald Trump to Support Bitcoin Price Rise Amid Regulatory Uncertainty
The upcoming presidential election in the United States takes on different narratives depending on whether analysts project the impact of Donald Trump’s or President Biden’s victory. A new report from Standard Chartered shows an improvement in the performance of the Bitcoin (BTC) market in the event of Donald Trump’s re-election.
According to the report, this move could result in positive signals in the Bitcoin market, associated with significant price increases and better adoption. Adoption of the asset has been mirrored by traditional investors in recent months, with most sectors seeing capital inflows. The bank noted that a second Trump term would be positive for clearer regulations.
“We believe a second Trump administration would be positive overall due to a more favorable regulatory environment. In a scenario of US fiscal dominance, we believe Bitcoin would be a good hedge against dedollarization and declining confidence in the US Treasury market.
Standard Chartered points on debt and regulation
Adverse macroeconomic conditions are a major factor driving new flows into Bitcoin. As a result, Bitcoin is considered a hedge against inflation in many countries. Increasing United States debt has been described as attracting more users to Bitcoin following a decline in sentiment within the Treasury.
Additionally, Donald Trump’s re-election is now expected to bring much needed regulatory clarity to the sector following previous years of uncertainty. Recently, the Securities and Exchange Commission (SEC) attacked crypto companies with stifling lawsuits, leading to a backlash from the broader community.
Companies like Coinbase, Ripple, Binance, Kraken, etc. have been subject to regulatory review. It is worth noting that former President Trump has criticized Bitcoin in the past, emphasizing that he was not a fan of the asset, highlighting the volatile nature of cryptocurrencies.
Bitcoin at $150,000 after Trump’s victory?
Last year, institutional clients made bullish projections about Bitcoin’s growth. This was driven by anticipation of the Bitcoin ETF spot approval and the price rally to $44,000 in December. Chartered standard restated its price projection of $150,000 for the asset at the end of the year and $200,000 in 2025.
Although these estimates appear far removed from the current price, should a Donald Trump victory provide clarity, users estimate similar price increases for the asset through renewed investment.
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.