Standard Chartered Bank's latest report highlights a significant potential upside for cryptocurrencies if Donald Trump wins the 2024 U.S. presidential election, suggesting a conducive regulatory environment and strong price targets for Bitcoin.
Contents
Potential Positive Impact on Cryptocurrency Market from Regulatory Warmth
In a recent research report released on May 7, 2024, Standard Chartered Bank, a global investment bank based in London, indicated that a victory for Donald Trump in the upcoming U.S. presidential election could be beneficial for the cryptocurrency sector. This outlook has been highlighted in multiple reports.
The U.S. presidential election is set for November 2024, with former President Donald Trump, the Republican candidate, competing against the current President and Democratic candidate, Joe Biden.
Standard Chartered Bank has raised concerns about the risks of America's fiscal dominance due to the monetization of government debt by the Federal Reserve Board (FRB).
According to the bank, this situation could lead investors to seek alternative assets, thus potentially benefiting cryptocurrencies.
Additionally, the bank anticipates that a second Trump administration might create a more supportive regulatory environment for digital assets.
It is expected that de-dollarization leading to a passive price increase in Bitcoin, along with regulatory warmth and approval of physical ETFs, could actively support the cryptocurrency industry under Trump's potential re-election.
Predictions for Bitcoin Prices in 2024 and 2025
The report also presents a view that the U.S. fiscal advantage could significantly impact the Treasury curve in three ways, all of which historically correlate positively with Bitcoin prices:
- A steeper nominal 2-year/10-year curve
- A substantial increase in breakeven rates over real yields
- An increase in the term premium
Breakeven rates are an economic term indicating the conditions or levels necessary for an investment or trade to become profitable.
Previously, Standard Chartered Bank has been bullish on Bitcoin, and in this report, it has projected that Bitcoin prices could reach $150,000 by the end of 2024 and $200,000 by the end of 2025.
-
"Coexistence with Bitcoin is Possible," says Former U.S. President Trump
Former U.S. President Donald Trump has expressed a newfound acceptance of Bitcoin, marking a significant shift from his previous stance. Discover how this change could impact the cryptocurrency world.
続きを見る