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Trump’s election could be positive for Bitcoin
A report from Standard Chartered warns that the growing risk of US fiscal dominance due to the Federal Reserve’s potential debt monetization could push investors into cryptocurrencies.
In this context, a second term under the former president Donald Trump could benefit digital assets.
“We believe a second Trump administration would be largely positive through a ‘more’ approach. support regulatory environment,” the report states.
Standard charter Analyst Geoff Kendrick pointed out that Bitcoin could offer a valuable hedge against de-dollarization and declining confidence in US Treasuries.
“A steeper 2- to 10-year nominal curve, a greater rise in breakevens relative to real yields, and an increase in the term premium are three likely consequences of US fiscal dominance on the Treasury curve,” Kendrick added, highlighting the value of Bitcoin (Bitcoin) positive correlation with these developments.
The report notes that Trump’s previous term saw an average annual net sale of US government debt totaling $207 billion, up from $55 billion under President Biden.
Aside from the passive advantage for Bitcoin due to de-dollarizationStandard Chartered expects a second Trump administration to promote Bitcoin and digital resources through looser regulations and the approval of US spot ETFs.
Earlier this year, Trump spoke with CNBC on cryptocurrency, showing openness to the industry and stressing that he wouldn’t want to take it away from them. While he doesn’t own any Bitcoin, the former president said he recognizes its growing popularity.
Standard Chartered reiterated its projections on the value of Bitcoin, prediction a year-end price of $150,000 and up to $200,000 by the end of 2025.