Standard Chartered, managing assets worth $800 billion, has released a report suggesting that a potential reelection of former President Donald Trump could lead to significant growth in the digital asset market.
Trump Presidency: A Boon for Digital Assets
The report indicates that a second Trump administration could create a more favorable regulatory environment for digital assets. Standard Chartered predicts that such conditions would likely drive increased foreign exits from the U.S. Treasury market, potentially surpassing the already substantial levels observed during Trump’s first term.
Under a Trump presidency, the report anticipates heightened investor interest in Bitcoin as a hedge against concerns over U.S. government debt monetization and fiscal dominance. Analysts project that Bitcoin could serve as a reliable hedge amidst de-dollarization trends and declining confidence in the U.S. Treasury market.
Support for Crypto Investment Vehicles
Furthermore, the report suggests that a Trump administration may be more inclined to support new investment vehicles in the crypto industry, such as spot ether exchange-traded funds (ETFs). This contrasts with the challenges faced by the crypto sector in obtaining regulatory approval for such instruments under the Biden administration.
Bullish Outlook on Bitcoin Price
Standard Chartered maintains an optimistic outlook on Bitcoin’s price trajectory, projecting it to reach between $150,000 and $200,000 by the end of 2025. The bank’s analysis reflects confidence in the potential growth of the cryptocurrency market under a hypothetical second Trump administration.
As the 2024 U.S. election approaches, investors and industry observers are closely monitoring political developments for potential implications on the digital asset landscape.
