Standard Chartered Bank predicts that a second term for the Trump administration would create a favorable regulatory landscape, leading to a positive outlook for the crypto sector. The bank has revised its forecast citing improved market sentiment after cautioning that bitcoin’s price could drop to the $50K range.
Standard Chartered on Trump and Crypto
Standard Chartered Bank’s head of FX Research and Digital Assets Research, Geoff Kendrick, believes that a victory by former U.S. President Donald Trump in November’s U.S. presidential election would be “bitcoin positive.”
Commenting on the implications of the November U.S. election for the crypto sector, the analyst remarked:
We think that a second Trump administration would be broadly positive via a more supportive regulatory environment.
Trump initially opposed crypto and bitcoin during his presidency. However, he has launched several non-fungible tokens (NFTs) since leaving office. Last month, he described bitcoin as “an additional form of currency,” noting that the crypto has taken on a life of its own. In addition, he has acknowledged bitcoin’s popularity.
Earlier this month, Standard Chartered Bank warned that bitcoin’s price might drop to $50,000 citing crypto-specific factors and broader macroeconomic influences. Kendrick has revised his forecast following the Federal Reserve’s less hawkish-than-expected rate announcement last Wednesday, along with a strong U.S. jobs report on Friday.
He emphasized:
Things are improving and we have likely seen the low at $56,500 on 1 May.
Furthermore, Kendrick highlighted concerns regarding the sustainability of U.S. government debt and deficits. This could potentially lead to a steeper yield curve for U.S. Treasurys, along with increased break-evens and higher term premiums. “We think such a scenario would be broadly supportive of digital assets as investors seek alternative assets,” he described.
Source: Bitcoin
