Standard Chartered Bank stated in a recent research report that Bitcoin is expected to benefit from the US debt problem and Trump’s election, causing its price to further rise. The report reiterated that the price of BTC will reach $150,000 by the end of the year and further climb to $200,000 by the end of 2025.
Background:
Bitcoin is a commodity! Multiple Chinese legal experts: Virtual currency has property attributes and should be protected by law.
Supplementary background:
Bitcoin national holdings ranking: The US ranks first with 210,000 coins! China ranks second, and the third place is unexpected.
According to Standard Chartered Bank’s recent research report, the US’s dominant fiscal position faces risks due to the monetization of government debt by the Federal Reserve. This may drive investors to seek alternative assets such as cryptocurrencies for hedging. Standard Chartered Bank believes that this trend will help support the growth of the cryptocurrency market.
Trump’s election will once again boost BTC’s rise.
Standard Chartered Bank’s latest report pointed out that if Trump is re-elected as the US president, 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 emphasized that as the US fiscal policy continues to dominate the economic landscape, Bitcoin will become an effective hedge tool against de-dollarization and declining confidence in the bond market. He predicts that this situation will contribute to Bitcoin’s performance in future markets.
The analysis further points out that the US’s dominant fiscal position may have a significant impact on the government bond yield curve, including a steeper 2-year and 10-year government bond yield curve, an increase in the break-even point exceeding the actual yield, and an increase in term premia. These factors combined may further push up the price of Bitcoin.
US bonds will be sold off more severely.
If Trump is re-elected, the US government may accelerate the withdrawal of foreign capital from the US Treasury market due to fiscal problems. The report mentioned that during Trump’s first term, the average annual net selling of foreign capital of US government debt reached $207 billion, while during President Biden’s term, this number was only $55 billion.
The report further analyzes that in addition to the 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 bring significant positive impact to 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.