Standard Chartered Report: Trump’s Election Could Benefit Bitcoin
A recent report from Standard Chartered Bank has suggested that the potential monetization of U.S. debt by the Federal Reserve and the increasing risks associated with U.S. fiscal dominance might drive investors towards cryptocurrencies.
The report highlights that a potential reelection of former U.S. President Donald Trump could be favorable for digital assets. It states, “We believe a second Trump administration would likely have a broadly positive impact through a more supportive regulatory environment.”
Geoff Kendrick, an analyst at Standard Chartered, emphasized that Bitcoin could serve as a valuable hedge against the potential de-dollarization and diminishing confidence in U.S. Treasury bonds. Kendrick added, “A steeper nominal 2-year/10-year curve, breakeven growth exceeding real yields, and rising term premiums are three possible consequences of U.S. fiscal dominance on the Treasury curve.” He highlighted the positive correlation between these factors and Bitcoin (BTC).
During Trump’s previous term, the net average annual sale of U.S. government bonds was $207 billion, compared to $55 billion during President Biden’s term.
Beyond the passive benefits to Bitcoin from de-dollarization, Standard Chartered anticipates that a second Trump administration could promote Bitcoin and other digital assets by easing regulations and approving U.S. spot ETFs.
Earlier this year, during an interview with CNBC, Trump expressed an openness towards the cryptocurrency industry, noting that he did not want to take it away despite not owning any Bitcoin himself. He acknowledged Bitcoin’s increasing popularity.
Standard Chartered reaffirmed its bullish outlook on Bitcoin, forecasting a price of $150,000 by the end of the year and $200,000 by the end of 2025.
