Standard Chartered: US financial risks and Trump's re-election will drive the cryptocurrency market, with Bitcoin aiming for $150,000 by the end of the year.

According to a report by CoinDesk, Standard Chartered Bank issued a report this week stating that due to the dominant position of the U.S. dollar in the financial system and the risk of government debt monetization, investors may seek alternative assets such as cryptocurrencies. The report also mentioned that Trump's re-election could have a positive impact on digital assets. It reiterated the year-end Bitcoin price target of $150,000 and $200,000 by the end of 2025.

Standard Chartered Bank stated in a research report on Tuesday that the risk of the Federal Reserve monetizing government debt and increasing the US fiscal dominance is growing. As investors seek alternative assets, this situation should support cryptocurrencies. Bitcoin (BTC) is expected to provide a good hedge against de-dollarization and declining confidence in the US Treasury market.

The report also mentioned the impact of the US election:

We believe that a more supportive regulatory environment from Trump's second term government will have broad positive implications.

The report stated that if Trump wins the election, the second term government may accelerate the withdrawal of foreign official buyers of US Treasury due to fiscal issues. It pointed out that during Trump's first term, the average annual net sale of US government debt was $207 billion, compared to only $55 billion during Biden's presidency.

In addition to the passive drive of de-dollarization on Bitcoin, Standard Chartered Bank expects the Trump second term government to actively support Bitcoin and broader digital assets by relaxing regulations and approving US spot ETFs. The bank reiterates its Bitcoin price target of $150,000 by the end of the year and $200,000 by the end of 2025.

Comparing the launch of the first gold ETF, Standard Chartered analysts: Bitcoin is expected to reach $200,000 by 2025