Trump's Second Presidency Could Spell Gains for Crypto, NFTs

• Geoff Kendrick of Standard Chartered Bank suggests that a second Trump administration could positively impact Bitcoin due to a potentially more supportive regulatory environment for the crypto sector.
• Kendrick's view contrasts with Trump's initial opposition to cryptocurrencies during his presidency, but Trump's recent engagement with non-fungible tokens (NFTs) and acknowledgment of Bitcoin as "an additional form of currency" signal a shift in his stance.
• Standard Chartered Bank's warning of Bitcoin's potential price decline to $50,000 was influenced by macroeconomic and cryptocurrency-specific concerns. However, Kendrick's prediction has been revised in light of recent economic developments, which may lead to increased investor interest in digital assets amidst concerns about the sustainability of US government debt and deficits.

Geoff Kendrick, the head of FX Research and Digital Assets Research at Standard Chartered Bank, suggests that a win by former U.S. President Donald Trump in the upcoming November U.S. presidential election could have a positive impact on Bitcoin.

Kendrick believes that a second Trump administration would likely result in a more supportive regulatory environment for the crypto sector, which he views as beneficial overall.

During his administration, Trump first opposed cryptocurrencies like bitcoin. But since leaving government, he has introduced a number of non-fungible tokens (NFTs). He called bitcoin "an additional form of currency" last month, pointing out that it had become its own entity. Furthermore, he has recognized the widespread use of bitcoin.

Standard Chartered Bank issued a warning earlier this month, citing both macroeconomic and cryptocurrency-specific issues, that bitcoin's price would fall to $50,000. In light of the Federal Reserve's less aggressive than anticipated rate move last Wednesday and the positive U.S. employment report that was released on Friday, Kendrick has updated his prediction.

Kendrick also emphasized worries about the sustainability of the debt and deficits of the US government. This can result in a steeper yield curve for US bonds. Treasurys, as well as higher term premiums and break-even points. As investors look for other assets, "we think such a scenario would be broadly supportive of digital assets," he said.

Trump's Plan for Bitcoin

On Monday, Trump hinted that his government would not utilize regulatory authorities to impose strict regulations on the usage of bitcoin and other cryptocurrencies. If he were to win the presidency again.

Trump, the presumptive Republican nominee for president, expressed his preference for traditional currency, stating his past desire for a singular currency, the dollar, to prevent its devaluation. However, he acknowledged the increasing prevalence of cryptocurrency, particularly when he observed a significant portion of sales for his expensive Trump-branded sneakers being paid with cryptocurrency. Although he personally hasn't purchased Bitcoin, Trump indicated his openness to accepting it as payment, reflecting the growing acceptance of cryptocurrencies in mainstream commerce.

The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.