|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Standard Chartered Predicts Bitcoin Surge as US Fiscal Dominance and Trump Favor Regulation
May 08, 2024 at 02:00 am
A Standard Chartered research report analyzes the potential impact of US fiscal dominance and the upcoming presidential election on Bitcoin (BTC). The report suggests that increased dominance, coupled with Federal Reserve monetization of government debt, could drive investors to seek alternative assets like cryptocurrencies. A second Trump administration could provide a favorable regulatory environment for cryptocurrencies. Despite recent market volatility, Bitcoin options markets remain bullish, with call options outweighing put options. Memecoins such as Pepe (PEPE) and Dogwifhat (WIF) continue to dominate leverage among altcoins.
Standard Chartered Predicts a Surge in Bitcoin Price Amid US Fiscal Dominance and Trump's Favorable Regulatory Stance
In a comprehensive research report, Standard Chartered analysts have meticulously analyzed the potential implications of US fiscal dominance and the upcoming presidential election on the trajectory of Bitcoin (BTC). Their findings suggest that both scenarios could have a profound impact on BTC and the broader digital asset market.
US Fiscal Dominance: A Catalyst for Alternative Investments
According to the report, the ongoing US fiscal dominance, coupled with the aggressive monetization of government debt by the Federal Reserve, is likely to drive investors towards alternative assets, such as cryptocurrencies, in search of protection and diversification. This shift in sentiment could create a favorable environment for BTC, which has gained recognition as a hedge against traditional market uncertainties.
Trump Administration's Pro-Crypto Stance
Analysts at Standard Chartered also speculate that a second Trump administration could lead to a more supportive regulatory environment for cryptocurrencies. This is based on the premise that the previous administration displayed a more open and accommodative stance towards digital assets, which could potentially boost the cryptocurrency market and facilitate the broader adoption of BTC.
Potential Effects on Bitcoin: A Bullish Outlook
Geoff Kendrick, an analyst at Standard Chartered, highlights three potential effects of US fiscal dominance on the US Treasury curve: a steeper nominal 2-year/10-year curve, a greater breakeven increase than real yields, and an increase in the term premium. These factors could contribute to a bullish trajectory for BTC, as investors seek out assets that offer protection against rising inflation and market volatility.
Standard Chartered's bullish outlook on BTC is reflected in its price forecast, with analysts predicting that it could reach $150K by the end of this year and $200K by the end of 2025. This optimistic projection is underpinned by the belief that the combination of US fiscal dominance and a favorable regulatory environment will continue to fuel demand for BTC.
Bullish Momentum Persists in Bitcoin Options Markets
Recent data from Kaiko further corroborates the bullish sentiment in the Bitcoin options market. Despite recent market volatility, market participants remain optimistic, with call options outweighing put options in volume. This indicates a strong appetite for bullish bets on Bitcoin's future price trajectory.
Key Highlights of Options Market Sentiment
- Last week's fluctuations saw Bitcoin drop below the $57,000 mark before rebounding over the weekend, driven by eased concerns over Federal Reserve interest rates.
- Put options, which grant the holder the right to sell the underlying asset at a predetermined price, constitute approximately 28% of the volume on Deribit for the May 31 expiry.
- With Bitcoin's recovery above $64,000, these put options are no longer profitable. Call options have regained profitability and will remain profitable should BTC trade within the $60,000 to $65,000 range.
- Call options continue to dominate puts in terms of volume, reflecting an overall bullish outlook among market participants.
- Bitcoin options contracts expiring on September 27 are predominantly composed of call options, with a strike price of $65,000 as the most popular choice.
Memecoins Maintain Dominance in Leverage
Despite recent market corrections, some memecoins have maintained dominance in leverage among the top 30 altcoins by market capitalization. Notably, Pepe (PEPE) and Dogwifhat (WIF) stand out with leverage ratios double that of other altcoins. Following is Filecoin's FIL token, which experienced a rally after its integration with Solana in mid-February. Bitcoin Cash (BCH) is also a notable mention.
The research report from Standard Chartered underscores the potential growth prospects for Bitcoin in the face of ongoing US fiscal dominance and the possibility of a supportive regulatory environment under a second Trump administration. The bullish momentum in the Bitcoin options market further corroborates this optimistic outlook, signaling that market participants are betting on a continued upward trajectory for Bitcoin's price.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Altcoins Set to Explode: Crypto Analysts Predict Record Highs in 2024
- May 17, 2024 at 03:19 pm
- Altcoins Poised for Explosive Growth: Crypto Analysts Predict ATHs in 2024 As the cryptocurrency market exhibits optimistic indications of a sustained
-
- Embrace Meme Coins: Diversify Your Crypto Holdings with Bonk and Raboo
- May 17, 2024 at 03:19 pm
- Embrace the Meme Coin Revolution: Diversify Your Crypto Portfolio with Bonk and Raboo In the ever-evolving crypto landscape, where volatility reigns s
-
- Three Cryptocurrencies Poised for Takeoff: Toncoin, Render, and Algotech
- May 17, 2024 at 03:17 pm
- Toncoin, Render, and Algotech: The Crypto Trifecta Set to Soar In the ever-evolving crypto market, where fortunes are made and lost with lightning spe
-
- AI Cryptos Lead Surge in Crypto Market: Render, Bittensor, and Raboo Dominate
- May 17, 2024 at 03:14 pm
- The Rise of AI Cryptos: Render, Bittensor, and Raboo Lead the Charge The cryptocurrency market is experiencing a resurgence in 2024, with a particular
-
- Furrever Token Aims to Rival Success of Crypto Giants, Channeling Cuteness and Engagement
- May 17, 2024 at 03:14 pm
- Furrever Token: Poised to Emerge as a Crypto Giant, Rivaling the Success of XRP, Cardano, and Polygon In the ever-evolving digital asset landscape, a
-
- Shiba Inu and Dogwifhat Soar as Meme Coin Adoption Expands
- May 17, 2024 at 03:05 pm
- Shiba Inu and Dogwifhat Surge Amidst Wider Meme Coin Adoption Integration with Global Payment Service Shiba Inu (SHIB), the second-largest meme coin b
-
- USD Index Key to Bitcoin's Potential 127% Surge, Says Analyst
- May 17, 2024 at 03:04 pm
- US Dollar Index Holds Key to Bitcoin Price Surge, Analyst Predicts 127% Rally Acclaimed financial analyst Jamie Coutts from Real Vision has asserted t
-
- CoinGeek AMA Highlights Blockchain Innovations Ahead of London Conference
- May 17, 2024 at 03:03 pm
- CoinGeek Weekly Livestream AMA Explores Blockchain Advancements as London Blockchain Conference Nears In anticipation of the London Blockchain Confere
-
- Chainlink Poised for Surge as Technical Analysis Reveals Bullish Momentum
- May 17, 2024 at 03:02 pm
- Chainlink Poised for a Surge, Technical Analysis Reveals Strong Bullish Momentum NEW DELHI, India (CoinChapter.com) - Chainlink (LINK), the leading pr