TL;DR
- Bitcoin Price: Could reach $200,000 by 2025 due to second Donald Trump administration and US tax changes
- Geoff Kendrick: Warns of risk of fiscal dominance and debt monetization by the Federal Reserve in the US.
- Trump’s second term: Could bring favorable regulation for BTC and cryptocurrencies.
The price of Bitcoin has been the subject of recent speculation due to a combination of factors that could drive it to unprecedented levels.
Geoff Kendrick, head of FX and crypto research at Standard Chartered, has highlighted the growing risk of tax dominance in the United States.
This scenario would involve the Federal Reserve being forced to monetize government debt, which, in turn, could drive investors toward alternative assets like Bitcoin (BTC).
Kendrick suggests that the possibility of a second Donald Trump administration could be a catalyst for the rise in BTC price.
Although Trump was initially critical of cryptocurrencies during his previous term, his stance has recently softened, which could result in more favorable regulation and the approval of Bitcoin ETFs in the United States.
This, combined with the risk of tax dominance, could drive the price of Bitcoin to between $150,000 and $200,000 by the end of 2025, according to estimates.
Bitcoin’s role as a hedge against US de-dollarization is another key point
In a scenario of U.S. fiscal dominance, where the Federal Reserve may need to monetize government debt, Bitcoin could emerge as an appealing alternative for investors wary of these economic uncertainties.
The growing risk of fiscal dominance, as highlighted by Geoff Kendrick from Standard Chartered, underscores the potential for Bitcoin to serve as a hedge against de-dollarization and a declining confidence in the U.S. Treasury market.
Moreover, under a hypothetical second Trump administration, there could be a notable shift in the dynamics affecting Bitcoin’s valuation.
The potential for a more supportive regulatory environment, coupled with Trump’s evolving stance on cryptocurrencies, might encourage increased adoption and investment in BTC and other digital assets.
This regulatory pivot could include considerations for the approval of Bitcoin-related financial products such as spot ETFs in the United States.
While these projections are interesting for cryptocurrency investors and enthusiasts, it is important to remember that the cryptoasset market is volatile and subject to multiple factors.
Changes in tax policy, regulatory decisions, and geopolitical events can have a significant impact on the price and adoption of BTC.
Therefore, it is crucial for investors to carefully evaluate the risks and do their due diligence before making investment decisions in this evolving space.
