Standard Chartered Bank’s recent research report suggests that Bitcoin will benefit from the US debt problem and Trump’s election, which will further push up the price. The report reiterates that Bitcoin will reach $150,000 by the end of the year and further climb to $200,000 by the end of 2025.
Standard Chartered Bank believes that due to the monetization of government debt by the Federal Reserve, the United States’ dominant fiscal position is at risk. This may drive investors to seek alternative assets such as cryptocurrencies for hedging. The bank believes that this trend will support the growth of the cryptocurrency market.
Trump’s re-election will further boost BTC
Standard Chartered Bank’s latest report points out that if Trump is re-elected as President of the United States, it is expected to have a positive impact on the cryptocurrency market. Analyst Geoff Kendrick believes that the Trump administration will promote a more supportive regulatory environment, which will further promote the development and application of cryptocurrencies.
Kendrick emphasizes that with the continued dominance of US fiscal policy in the economic landscape, Bitcoin will become an effective hedge tool for de-dollarization and declining confidence in the bond market. He predicts that this situation will contribute to Bitcoin’s performance in the future market.
Further analysis indicates that the United States’ dominant fiscal position may have a significant impact on the bond curve, including a steeper yield curve for 2-year and 10-year bonds, an increase in breakeven points exceeding actual yields, and an increase in term premiums. These factors combined may further drive up the price of Bitcoin.
US bonds will be sold more severely
If Trump is re-elected, the US government may accelerate the withdrawal of foreign capital from the US bond market due to fiscal problems. The report mentions that during Trump’s first term, the annual average net sales of US government debt by foreign capital reached $207 billion, compared to only $55 billion during Biden’s presidency.
The report further analyzes that in addition to passive promotion caused by de-dollarization, the Trump administration is expected to actively support the growth of Bitcoin and other digital assets by relaxing regulations on digital assets and approving US spot ETFs. This will have a significant positive impact on the cryptocurrency market.
Based on these predictions, Standard Chartered Bank reiterates its price target for Bitcoin, expecting it to reach $150,000 by the end of the year and further climb to $200,000 by the end of 2025.