Standard Chartered Bank: BTC may benefit from the dominance of the U.S. Treasury and Trump's election victory

ChainCatcher news, according to CoinDesk, Standard Chartered Bank stated in a research report that the risk of U.S. fiscal dominance brought about by the Federal Reserve's monetization of government debt is rising. In this scenario, investors may seek alternative assets, including cryptocurrencies, which is positive for cryptocurrencies.

The report also pointed out that if Trump wins the election, his second-term government may promote a more supportive regulatory environment, which would be positive for digital assets. Trump's return to the White House could accelerate the withdrawal of foreign official buyers from the U.S. Treasury market due to fiscal concerns. During Trump's first term, foreign investors sold an average of $207 billion in U.S. Treasuries each year, while this figure was only $55 billion during Biden's administration.

Standard Chartered reiterated its year-end target price of $150,000 for Bitcoin and a target price of $200,000 by the end of 2025. The report stated that the price of Bitcoin is positively correlated with the steepening of the U.S. Treasury yield curve, rising inflation expectations, and increasing term premiums.