A recent report from Standard Chartered has raised eyebrows by suggesting that a second term for former President Donald Trump could have positive implications for Bitcoin and other cryptocurrencies. The report highlights concerns over the growing risk of U.S. fiscal dominance, driven by the potential monetization of debt by the Federal Reserve, which could prompt investors to seek refuge in digital assets.

According to Standard Chartered analyst Geoff Kendrick, a second Trump administration might create a more supportive regulatory environment for cryptocurrencies. This stance contrasts with the perception that the Biden administration has been relatively more cautious or even hostile towards digital currencies.

Kendrick emphasized Bitcoin's potential as a hedge against de-dollarization and declining confidence in U.S. Treasuries. He pointed out that certain economic consequences, such as a steeper nominal yield curve and increased inflation expectations, could align with Bitcoin's positive performance indicators.

The report also noted Trump's past actions regarding U.S. government debt, highlighting an average annual net selling of $207 billion during his presidency compared to $55 billion under President Biden. This historical context suggests a correlation between Trump's policies and a potential preference for alternative assets like Bitcoin.

Moreover, Standard Chartered anticipates that a second Trump administration would likely lead to relaxed regulations and the approval of U.S. spot exchange-traded funds (ETFs) for Bitcoin and other digital assets. These regulatory changes could further boost confidence in the cryptocurrency market.

Despite not owning any Bitcoin himself, Trump has expressed openness to the cryptocurrency sector in the past. In an interview with CNBC earlier this year, he acknowledged the increasing popularity of Bitcoin and indicated that he wouldn't seek to curtail its growth.

In terms of price projections, Standard Chartered maintains an optimistic outlook for Bitcoin, forecasting a year-end price of $150,000 and a potential increase to $200,000 by the end of 2025. These predictions reflect the growing institutional interest in Bitcoin and the broader cryptocurrency market.