The upcoming presidential election in the United States is shaping up in more ways than could have been imagined. One of the narratives around it is the potential influence of a Donald Trump win on Bitcoin (BTC).
A recent Standard Chartered report detailed how a Trump win would greatly impact BTC’s market performance, cause a significant upsurge in its price, and ultimately lead to improved adoption.
Donald Trump’s Bitcoin Journey
For what it’s worth, Trump initially had a rocky relationship with crypto but has recently become a passionate advocate of the asset class. So much so that he said in a March interview that if elected, he would not crack down on Bitcoin or other digital assets.” Trump also has a tangible amount of BTC in his portfolio, recently noting that he makes money from it and while also having fun with it.
There's no Call To Action with the ID #3.However, that is not all that Standard Chartered considered in its report. Per the bank, a Trump second term already represents a giant step towards clearer regulations. This clarity is expected to create a conducive environment where Bitcoin and other digital assets will thrive. Part of Standard Chartered’s statement reads:
“We think that a second Trump administration would be broadly positive via a more supportive regulatory environment.”
Notably, the crypto industry has long been facing regulatory uncertainty. This lack of clear guidance has often pitched crypto-based firms against financial watchdogs and other government agencies. Many times, the issues border around what qualifies a particular product offering as a security.
It is to this lack of clear guidelines that the likes of Coinbase, Ripple, Binance, Kraken, etc. found themselves in the crosshairs of the U.S. Securities and Exchange Commission (SEC).
More Hope for The Asset
Meanwhile, it is not only a Trump win that holds the potential of causing an uptick in BTC prices. Current macroeconomic conditions are also good for it. According to Standard Chartered, the rising United States debt is bringing more users towards Bitcoin as they lose faith in the Treasury. The bank wrote a part statement, saying:
There's no Call To Action with the ID #3.“In a scenario of U.S. fiscal dominance, we think Bitcoin would provide a good hedge against de-dollarization and declining confidence in the U.S. Treasury market.”
Since last year, there have been various predictions on Bitcoin’s growth. Although many were spurred by the anticipation for spot Bitcoin ETFs and the April halving event, Standard Chartered gave one of the biggest predictions of a price rally to $150,000 at the end of 2024.
In its latest report, the bank has maintained its previous projection for the asset, adding that BTC price could even hit $200,000 in 2025.
