Newsdonald trump
May 11, 2024 05:22 AM EDT
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.
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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.
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.
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