Bitcoin Could Benefit From U.S. Fiscal Dominance and a Trump Win, Standard Chartered Says
Summary
The risk of U.S. fiscal dominance due to the Federal Reserve's monetization of government debt is increasing, which could be beneficial for cryptocurrencies, according to a research report by Standard Chartered. The report suggests that a second Trump administration could provide a more supportive regulatory environment for cryptocurrencies. In a scenario of U.S. fiscal dominance, bitcoin could serve as a hedge against de-dollarization and declining confidence in the U.S. Treasury market. The report also notes that a second Trump administration could lead to the withdrawal of foreign official U.S. Treasury buyers due to fiscal concerns. Standard Chartered maintains its bitcoin end-of-year target of $150,000 and $200,000 for year-end 2025.
