Standard Chartered claims that an electoral victory of Trump could have a positive impact on digital assets and Bitcoin, as well as the fiscal dominance of the United States (US) and the increasing monetization of government debt.
Investors could therefore turn to alternative assets such as cryptocurrencies to mitigate the risks associated with the above.
The bank also confirms its price forecasts for Bitcoin, setting them at $150,000 by the end of the year and $200,000 by the end of 2025. Let’s see all the details below.
US Fiscal Dominance: An Advantage for Bitcoin, Could Trump Favor Crypto?
As anticipated, the risk of growing fiscal dominance by the United States, accompanied by the monetization of public debt by the Federal ReserveIt is increasing.
This situation could benefit cryptocurrencies as investors look for alternatives, he said on Tuesday Standard Chartered in a research report. Furthermore, Donald Trump it could be a boon for cryptocurrencies.
In particular, in the report the analyst Geoff Kendrick declares the following:
“We believe a second Trump term would be largely positive, thanks to a more favorable regulatory environment. In an environment of US fiscal dominance, we think Bitcoin (BTC) represents a good hedge against de-dollarization and loss of confidence in US Treasuries.”
US fiscal dominance could have three main effects on the Treasury curve. A steeper 2yr/10yr curve, a larger increase in breakevens relative to real yields, and an increase in the term premium.
According to Kendrick, the price of Bitcoin is positively correlated with all three of these potential developments.
If Trump wins the election, his second term could accelerate the withdrawal of official foreign investors from the US Treasury market. This is due to tax concerns.
During his first term, the average annual net sale of U.S. government debt was $207 billion, compared to $55 billion during Biden’s presidency.
“In addition to the passive boost to BTC due to de-dollarization, we would expect a second Trump term to actively support BTC (and digital assets in general) through looser regulation and approval of US spot ETFs.”
Finally, Standard Chartered reiterated its views forecasts price for Bitcoin, setting them at $150,000 by the end of this year and $200,000 by the end of 2025.
Michael Saylor: Bitcoin is the only ‘steel’ among cryptocurrency metals
In an interview with journalist Natalie Brunell, Michael Saylorexecutive chairman and co-founder of MicroStrategy, outlined his vision for the future of Bitcoin’s price.
According to Saylor, January 2024 marked the beginning of Bitcoin adoption by businesses. A change linked to the regulatory framework and the distinctive path that Bitcoin is tracing compared to other digital assets.
The main catalyst for Bitcoin’s future, Saylor says, will be the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs.
This regulatory recognition would legitimize Bitcoin in the eyes of institutional investors and increase its attractiveness as a corporate treasury asset.
Saylor also stressed that the real decisive moment will be when the SEC will reject all other spot ETF requests for cryptocurrencies other than Bitcoin.
This would position Bitcoin as the only safe and distinctive choice among cryptocurrencies, dispelling doubts about its long-term uniqueness. His metaphor for how Bitcoin compares to other cryptocurrencies is clear:
“Once we realize that there is only steel and not a second-rate metal for structural civil engineering, the project moves forward.”
Bitcoin, in this vision, is steel, the material fundamental and irreplaceable.
This narrative takes on particular importance in light of the SEC’s impending decision on the Ethereum spot ETF, scheduled for May 23, 2024.
Bloomberg’s senior ETF analyst, Eric Balchunassignaled a decrease in the likelihood of approval, which could further solidify Bitcoin’s position as the only institutionally recognized cryptocurrency.
