Standard Chartered Predicts Bitcoin Price Will Reach $500,000 Driven by Trump’s Crypto Reserve
Standard Chartered predicts Bitcoin will reach $500,000, driven by Trump’s proposed Crypto Reserve. The bank has shifted investment strategy and forecasts gradual price increases. Following Trump’s executive order, the cryptocurrency market surged, potentially inspiring state-level Bitcoin reserves. Strategies for fiscal responsibility in establishing the reserve are also proposed.
Standard Chartered maintains its optimistic forecast that Bitcoin will reach $500,000, driven by the proposed Crypto Reserve from President Trump. The bank has adjusted its investment strategy from “sell into rallies” to “buy into dips,” anticipating a gradual rise in Bitcoin prices, predicting $200,000 by the end of 2025, $300,000 by the end of 2026, and ultimately $500,000 by 2028.
Following Trump’s executive order to establish a Crypto Reserve, the cryptocurrency market has experienced an 11% increase. This comes after a challenging February for Bitcoin, which marked its lowest monthly performance since June 2022. The proposed reserve aims to include Ethereum, XRP, Solana, and Cardano alongside Bitcoin, reflecting a substantial portion of the $3.2 trillion cryptocurrency market.
The government’s official endorsement of cryptocurrencies signifies a pivotal shift in regulatory attitudes towards digital assets. This new perspective regarding Bitcoin could potentially inspire similar legislative initiatives both across the United States and in other nations. Geoffrey Kendrick, the global head of digital asset research at Standard Chartered, notes that this federal move could encourage individual states to adopt their own Bitcoin reserves.
Furthermore, reports indicate that over 20 strategic Bitcoin reserve bills under various state considerations could lead to significant purchases of Bitcoin if enacted. This aligns with Senator Cynthia Lummis’ Strategic Reserve Bill, which aims for the U.S. government to acquire 200,000 Bitcoin annually until reaching a total of one million BTC.
Fiscal responsibility remains a crucial concern in establishing the proposed crypto reserve. Standard Chartered has outlined budget-neutral options for the government to procure Bitcoin without placing additional burdens on taxpayers. Suggested methods include possibly liquidating portions of the nation’s gold reserves, utilizing the U.S. Treasury’s Exchange Stabilization Fund, or integrating these plans into Senator Lummis’ proposed Bitcoin Act for 2024.
In conclusion, Standard Chartered’s positive outlook on Bitcoin is underscored by the anticipated effects of the proposed Crypto Reserve initiated by President Trump. The voice of support for cryptocurrencies continues to grow, with potential legislative actions across states indicating a significant shift in attitudes towards digital assets. Moreover, suggested budget-neutral strategies for acquiring Bitcoin may help achieve these ambitions without straining taxpayer resources.
Original Source: www.banklesstimes.com
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