FameEX Hot Topics | Standard Chartered Says a Second Trump Term Could Benefit Crypto Broadly

Standard Chartered Bank has expressed a favorable outlook for the cryptocurrency market should former U.S. President Donald Trump win a second term in the upcoming November U.S. presidential election. According to Geoff Kendrick, the head of FX Research and Digital Assets Research at Standard Chartered, a Trump administration is likely to foster a supportive regulatory environment, which could significantly benefit the sector.

During his first term, Trump was known for his skepticism towards cryptocurrencies, including Bitcoin. However, his stance appears to have softened since he left office, demonstrated by his involvement with non-fungible tokens (NFTs) and recent comments describing Bitcoin as "an additional form of currency." Trump acknowledged the independent momentum and growing popularity of Bitcoin, signaling a potential shift in his perspective towards digital currencies.

This adjusted view comes at a time when Standard Chartered had previously issued warnings about potential declines in Bitcoin's price, suggesting it could fall to the $50,000 range. These predictions were based on various crypto-specific factors and broader macroeconomic conditions. However, recent developments, including a less aggressive stance on interest rates by the Federal Reserve and positive U.S. employment data, have led Kendrick to revise his forecasts. He noted an improvement in conditions, suggesting that the market low might have been seen with Bitcoin’s dip to $56,500 on May 1.

Kendrick further elaborated on the economic landscape, pointing out concerns about the sustainability of U.S. government debt and deficits, which could reshape the financial environment. He speculated that such circumstances might steepen the yield curve for U.S. Treasuries and increase break-evens and term premiums. According to Kendrick, this scenario would likely drive investors towards digital assets as they search for alternative investment opportunities to hedge against potential market volatility and inflation.

Overall, the analysis from Standard Chartered paints a picture of a potentially thriving digital assets market under a second Trump administration, supported by more favorable regulatory frameworks and macroeconomic factors that align to bolster the appeal of cryptocurrencies as viable investment options.

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