In a research report, Standard Chartered Bank stated that Bitcoin may benefit from the dominant position of the US in the global economy and the election victory of Donald Trump. Analyst Geoff Kendrick wrote, “We believe that the government under Trump’s leadership will create a more supportive regulatory environment, which will have a broadly positive impact. In a scenario where the US dominates the global economy, we believe that Bitcoin (BTC) will serve as a good hedge against de-dollarization and declining confidence in the US Treasury market.”
The report pointed out that Trump’s second term government is likely to push for a more supportive regulatory environment, which is positive for digital assets and may accelerate the withdrawal of foreign official buyers from the US Treasury market due to fiscal concerns. During Trump’s first term, foreign investors sold an average of $207 billion worth of US bonds each year, while during Biden’s administration, this number was only $55 billion.
Standard Chartered Bank reiterated its year-end target price of $150,000 for Bitcoin, as well as its target price of $200,000 by the end of 2025. The report stated that the price of Bitcoin is positively correlated with the steepening of the US bond yield curve, rising inflation expectations, and increased term premium.
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Source link:
https://www.coindesk.com/business/2024/05/07/bitcoin-could-benefit-from-us-fis…
Note: All articles on Bitpush News represent the author’s views and do not constitute investment advice.
Original article link:
https://www.bitpush.news/articles/6680582
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