As a researcher with a background in economics and finance, I find the potential connection between a second Trump administration and the rise of cryptocurrencies intriguing. Based on my analysis of the Standard Chartered report and my understanding of historical trends, I believe that a more accommodative regulatory environment under a second Trump term could indeed benefit digital assets like Bitcoin.
A report from Standard Chartered sounds the alarm that increasing U.S. control over fiscal matters, potentially including debt monetization by the Federal Reserve, may prompt investors to seek refuge in cryptocurrencies.
In this context, a second term under former President Donald Trump might benefit digital assets.
“The report believes that a second term for Trump would generally bring about positive outcomes due to a more accommodating regulatory climate.”
Expert: According to Standard Chartered analyst Geoff Kendrick, Bitcoin‘s potential lies in its capability to serve as an effective safeguard against the process of de-dollarization and decreasing trust in U.S. Treasuries.
As an analyst, I would put it this way: “The trend of U.S. fiscal dominance is likely to result in a steeper slope between 2-year and 10-year Treasury yields. Moreover, there will be a more pronounced rise in inflation-linked yields relative to real yields. Additionally, an uptick in the term premium can be anticipated. Bitcoin’s positive correlation with these market conditions is noteworthy.”
During Trump’s tenure, the government sold an average of $207 billion in U.S. Treasury bonds annually. In contrast, under President Biden, this figure has dropped to an average of $55 billion per year.
Outside of the passive impact on Bitcoin resulting from de-dollarization, Standard Chartered anticipates that a second term for President Trump will bring about more lenient regulations and potential approval of U.S. Bitcoin spot Exchange-Traded Funds (ETFs), thereby boosting the cryptocurrency’s profile.
This year, Trump held a conversation with CNBC regarding cryptocurrency. He expressed a receptive attitude towards the industry, acknowledging its growing prevalence and expressly stating that he has no intention of eliminating it. Although he doesn’t personally possess any Bitcoin, Trump recognized its rising influence.
According to Standard Chartered’s latest predictions, the value of Bitcoin could reach $150,000 by the end of this year, and potentially climb even higher, reaching $200,000 by 2025.
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2024-05-07 20:58