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: Second Trump Term Would Be 'Broadly Positive' for Crypto
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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.
What are your thoughts on the potential impacts of a second Trump administration on the cryptocurrency market? Let us know in the comments section below.
