Standard Chartered Bank has forecasted a significant surge in Bitcoin’s price, potentially reaching $150,000 by the end of 2024, contingent upon Donald Trump’s re-election as U.S. President. This prediction stems from an expected shift towards a more favorable regulatory environment for cryptocurrencies under a Trump administration.
Impact of Fiscal Policies and Regulatory Environment
The bank’s analysts suggest that Trump’s potential presidency could lead to changes in U.S. fiscal policies that might enhance the attractiveness of cryptocurrencies like Bitcoin as alternative assets. During Trump’s previous term, there was a notable reduction in stringent regulations, which could repeat and bolster Bitcoin’s position in the market. The bank anticipates that a less restrictive regulatory framework and the approval of U.S. spot Exchange-Traded Funds (ETFs) would further stimulate the market.
Economic Implications and Bitcoin’s Status
The prediction also factors in broader economic concerns, such as U.S. fiscal dominance and the risk of the U.S. dollar devaluation, which could make Bitcoin a more appealing hedge against potential inflation and currency depreciation. Bitcoin’s fixed supply and the increasing institutional interest evidenced by rising ETF inflows are seen as fundamental drivers that will continue to push its price upward.
Long-term Predictions and Market Trends
Looking beyond 2024, Standard Chartered also projects a possible rise in Bitcoin’s price to $200,000 by the end of 2025, driven by continued institutional investment and favorable market conditions. This bullish outlook is underpinned by comparisons to the historical performance of gold after the approval of gold ETFs, suggesting that Bitcoin could follow a similar tarjectory as a “digital gold.”
The interplay between U.S. politics and cryptocurrency market dynamics underscores the sensitivity of Bitcoin’s valuation to changes in the regulatory and fiscal landscape. As the 2024 U.S. presidential election approaches, the potential re-election of Donald Trump could be a pivotal moment for investors in digital currencies.
