Bitcoin

Gary

Standard

President Donald Trump

Donald Trump

A Standard Chartered report warns that the growing risk of U.S. fiscal dominance due to the Federal Reserve’s potential debt monetization could drive investors to cryptocurrencies.
In this context, a second term under former President <a href="https://crypto.news/tag/donald-trump/" data-type="link" data-id="https://crypto.news/tag/donald-trump/" rel="noopener noreferrer nofollow">Donald Trump</a> might benefit digital assets.
“We think that a second Trump administration would be broadly positive via a more <a href="https://crypto.news/donald-trump-crypto-tolerance/" data-type="link" data-id="https://crypto.news/donald-trump-crypto-tolerance/" rel="noopener noreferrer nofollow">supportive</a> regulatory environment,” the report said.
<a href="https://crypto.news/tag/standard-chartered/" data-type="link" data-id="https://crypto.news/tag/standard-chartered/" rel="noopener noreferrer nofollow">Standard Chartered</a> analyst Geoff Kendrick emphasized that Bitcoin could offer a valuable hedge against de-dollarization and waning confidence in U.S. Treasuries.
“A steeper nominal 2-year/10-year curve, a greater increase in breakevens than real yields, and an increase in term premium are three probable consequences of U.S. fiscal dominance on the Treasury curve,” Kendrick added, highlighting Bitcoin’s (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) positive correlation with these developments.
You might also like: <a href="https://crypto.news/gary-gensler-crypto-operators-not-providing-adequate-disclosures/" rel="noopener noreferrer nofollow"> Gary Gensler: Crypto operators not providing adequate disclosures </a>
The report noted that Trump’s previous term saw an average annual net selling of U.S. government debt totaling $207 billion, versus $55 billion under President Biden.
Aside from the passive benefit to Bitcoin due to <a href="https://crypto.news/fomc-brics-de-dollarization-and-the-future-of-crypto/" data-type="link" data-id="https://crypto.news/fomc-brics-de-dollarization-and-the-future-of-crypto/" rel="noopener noreferrer nofollow">de-dollarization</a>, Standard Chartered expects a second Trump administration to promote Bitcoin and <a href="https://crypto.news/market-cap/" data-type="link" data-id="https://crypto.news/market-cap/" rel="noopener noreferrer nofollow">digital assets</a> through relaxed regulations and the approval of U.S. spot ETFs.
Earlier this year, Trump spoke with <a href="https://www.cnbc.com/2024/03/11/trump-suggests-he-would-not-oppose-bitcoin.html" data-type="link" data-id="https://crypto.news/donald-trump-crypto-tolerance/" target="_blank" rel="noopener noreferrer nofollow">CNBC</a> about cryptocurrency, showing openness to the sector and noting that he wouldn’t want to take it away. Despite not owning any Bitcoin, the former President said he recognized its increasing popularity.
Standard Chartered reiterated its projections for Bitcoin’s value, <a href="https://crypto.news/standard-chartered-doubles-down-on-150k-bitcoin-prediction/" data-type="link" data-id="https://crypto.news/standard-chartered-doubles-down-on-150k-bitcoin-prediction/" rel="noopener noreferrer nofollow">forecasting</a> a year-end price of $150,000 and up to $200,000 by the end of 2025.
Read more: <a href="https://crypto.news/spot-etfs-in-hong-kong-launch-softened-outflow-from-us-funds/" rel="noopener noreferrer nofollow"> Spot ETFs in Hong Kong launch softened outflow from US funds </a>

Standard Chartered: Trump being elected could be good for Bitcoin

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