1 week ago
A caller Standard Chartered study forecasts that a 2nd word for Donald Trump could importantly boost Bitcoin and different integer assets arsenic viable alternate investments.
The study investigates however US fiscal policies nether a imaginable Trump medication could steer investors toward Bitcoin and different cryptocurrencies.
Meanwhile, the lender has besides revised its outlook connected Bitcoin’s terms show successful the coming months and believes the flagship crypto saw its section bottommost connected May 1.
StanChart expert Geoffrey Kendrick told CryptoSlate:
“I americium blessed to accidental I was excessively pessimistic astir BTC’s interruption beneath 60k past week… Things are improving, and we person apt seen the debased (at 56.5k connected May 1).”
Kendrick added that the outlook revision was driven by a “less hawkish than feared FOMC and a affable US jobs report,” — which person been capable to boost inflows into spot Bitcoin ETFs pursuing a grounds week of outflows.
Standard Chartered reaffirmed its predicted people of $150,000 per Bitcoin by the extremity of 2024, escalating to $200,000 by the extremity of 2025. The bullish targets hinge connected assorted factors, including planetary fiscal conditions, the US electoral outcomes, and the evolving regulatory scenery affecting integer currencies.
Trump 2.0
According to the StanChart report, Trump’s anticipated presidency would apt beforehand a regulatory situation conducive to integer assets.
The study points to imaginable legislative changes, specified arsenic the support of US spot exchange-traded funds (ETFs) for cryptocurrencies, marking a notable departure from existent regulatory approaches. These moves would summation accessibility and legitimacy for Bitcoin and akin assets, perchance attracting a broader basal of organization and retail investors.
Highlighting fiscal patterns from Trump’s erstwhile term, the study noted that overseas authoritative US Treasury (UST) buyers importantly scaled backmost their holdings, with nett selling averaging $207 cardinal annually.
In comparison, during Biden’s term, this fig dropped to an mean of $55 cardinal per year. The study speculates that Trump’s re-election could intensify these trends, promoting a faster displacement from US Treasuries to alternate fiscal assets specified arsenic Bitcoin and gold.
Digital gold?
The study besides discussed Bitcoin successful examination to gold, positioning the flagship crypto arsenic a non-traditional fiscal plus with similarities to however golden functions arsenic a hedge.
It explained that Bitcoin, similar gold, tends to execute good arsenic a hedge against accepted fiscal assets during times of banking accent oregon erstwhile cardinal banks prosecute successful important monetary expansion. For example, the terms of Bitcoin roseate by $10,000 pursuing the illness of Silicon Valley Bank successful March 2023, showcasing its quality to enactment arsenic a harmless haven during fiscal crises.
However, the study besides noted a cardinal quality betwixt Bitcoin and golden — BTC does not execute arsenic good during periods of heightened geopolitical risk, dissimilar gold, which traditionally maintains oregon increases its worth during specified times.
The study partially attributed the quality to Bitcoin’s relation arsenic an hold of the tech sector, which tin beryllium much volatile and delicate to planetary tensions.
The station Trump’s imaginable instrumentality could catalyze large uptick successful alt investments similar Bitcoin – StanChart appeared archetypal connected CryptoSlate.
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