A recent report from Standard Chartered highlights the potential impact of U.S. fiscal dominance on the cryptocurrency market. The report suggests that the Federal Reserve’s debt monetization could drive investors towards cryptocurrencies as a hedge against economic uncertainty.

The report also speculates that a second term under former President Donald Trump could be beneficial for digital assets. Standard Chartered analyst Geoff Kendrick believes that a second Trump administration would create a more supportive regulatory environment for cryptocurrencies.

Kendrick emphasized that Bitcoin, in particular, could serve as a valuable hedge against de-dollarization and declining confidence in U.S. Treasuries. He pointed out that Bitcoin has shown a positive correlation with certain economic indicators, such as a steeper yield curve and an increase in term premium.

Standard Chartered predicts that a second Trump administration would likely lead to relaxed regulations and the approval of U.S. spot ETFs, further promoting the adoption of digital assets. Trump has previously expressed openness towards cryptocurrencies and acknowledged their growing popularity, despite not owning any Bitcoin himself.

The report also reiterated Standard Chartered’s bullish projections for Bitcoin’s price, forecasting a year-end value of $150,000 and a potential increase to $200,000 by the end of 2025.

Overall, the report suggests that the evolving political and economic landscape could have a significant impact on the cryptocurrency market, making it an attractive option for investors looking to diversify their portfolios.

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