Standard Chartered: Trump's election could be good for Bitcoin

2024-05-08 07:29:44

A Standard Chartered report warned of the growing risk of U.S. fiscal dominance due to the Fed’s possible coins of debt, which could prompt investors to turn to Crypto Assets.

In this case, former US President Donald Trump’s second term could be beneficial for digital assets.

According to the report, if Trump returns to power, the regulatory environment will be more favorable, which is overall positive news for the market.

Standard Chartered Bank analyst Geoff Kendrick stressed that Bitcoin can serve as a very valuable safe-haven to help investors Hedging against the risks of de-dollarization and the impact of declining confidence in US Treasuries.

Kendrick added: “The steeper 2-year and 10-year yield curves in nominal terms, the rise in breakeven inflation outpacing real yields, and higher term premiums are all potential impacts that U.S. fiscal dominance could have on the Treasury yield curve.” He also highlighted the positive correlation between Bitcoin (BTC) and these fiscal trends.

According to the report, the average annual net sale of U.S. government debt totaled $207 billion during Trump’s previous term, compared with $55 billion under President Biden. This comparison shows that the net selling of U.S. government bonds during Trump’s tenure was much greater than during the same period of Biden’s tenure.

In addition to the passive benefits of de-dollarization for Bitcoin, Standard Chartered expects Trump’s second term to boost Bitcoin and digital asset by deregulating and approving U.S. Spot ETF.

In an interview with CNBC earlier this year, Trump expressed an open attitude towards Crypto Assets and made it clear that he does not intend to stifle the growth of the industry. While he doesn’t own Bitcoin himself, he acknowledges that Bitcoin’s popularity as an asset class is rising. This suggests that Trump maintains a degree of interest and recognition of emerging fintech trends, even though he may not be directly involved.

Standard Chartered reiterated its forecast for Bitcoin’s value, expecting the price to reach $150,000 by the end of the year and possibly $200,000 by the end of 2025.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.