FameEX Hot Topics | Standard Chartered: Second Trump Presidency Could Positively Impact Crypto

Standard Chartered Bank has projected a promising future for the cryptocurrency market if former U.S. President Donald Trump secures a second term in the upcoming November presidential election. Geoff Kendrick, who leads FX Research and Digital Assets Research at the bank, suggests that Trump's administration would likely encourage a regulatory climate that could greatly benefit the cryptocurrency sector.

During his previous tenure, Trump displayed considerable skepticism towards cryptocurrencies, such as Bitcoin. Nonetheless, his perspective seems to have evolved since leaving office, as evidenced by his engagement with non-fungible tokens (NFTs) and recent remarks where he referred to Bitcoin as "an additional form of currency." These comments indicate a recognition of Bitcoin's enduring popularity and autonomous growth, marking a notable shift in his approach to digital currencies.

This change in stance is timely, considering Standard Chartered's earlier warnings about potential downturns in Bitcoin’s price, which it had predicted might drop to around $50,000. These forecasts were informed by a mix of specific cryptocurrency dynamics and wider economic factors. However, following recent economic developments, including the Federal Reserve's tempered approach to interest rates and favorable job market data in the U.S., Kendrick has updated his outlook. He now believes the market might have already seen its lowest point with Bitcoin's decrease to $56,500 on May 1.

Kendrick also discussed broader economic issues, particularly the sustainability of U.S. government debt and deficits, which could potentially transform the financial landscape. He theorized that these conditions might lead to a steeper yield curve for U.S. Treasuries and higher break-evens and term premiums. Such an environment could prompt investors to turn to digital assets as they seek alternative avenues to safeguard against potential market upheavals and inflation.

In summary, Standard Chartered's analysis suggests that a second Trump administration could herald a flourishing period for digital assets, supported by an improved regulatory framework and economic conditions that enhance the attractiveness of cryptocurrencies as legitimate investment options. This optimistic scenario hinges on the expectation that the regulatory environment would remain favorable, helping to stabilize and potentially accelerate the growth of the digital currency market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.