A Standard Chartered report warns that increased US fiscal control risk due to potential debt monetization by the Federal Reserve could drive investors towards cryptocurrencies.
In this context, a second term under former President Donald Trump could benefit digital assets.
“We believe the second Trump administration will be largely positive with a more supportive regulatory environment,” the report said.
Standard Chartered analyst Jeff Kendrick highlighted that Bitcoin could be a valuable hedge against de-dollarization and declining confidence in U.S. Treasuries.
Kendrick further notes that “a steeper nominal 2-year/10-year curve, a larger increase in break-even points than real yields, and an increase in the term premium are three possible outcomes of U.S. fiscal dominance in the financial curve. '', emphasizing the characteristics of Bitcoin (BTC). There is a positive correlation with these developments.
The report notes that during President Trump's previous term, average annual net sales of U.S. government debt totaled $207 billion, compared to $55 billion under President Biden.
Apart from the passive benefits to Bitcoin from de-dollarization, Standard Chartered expects the second Trump administration to promote Bitcoin and digital assets through deregulation and approval of a US spot ETF.
Earlier this year, President Trump spoke to CNBC about cryptocurrencies and expressed his openness to the field, saying he didn't want to cover cryptocurrencies. The former president said he is aware of Bitcoin's growing popularity, even though he does not own it.
Standard Chartered reiterated its prediction for Bitcoin's value, predicting a year-end price of $150,000 and a peak of $200,000 by the end of 2025.
