Bitcoin Could Reach $200,000 During Trump’s Term, Says Standard Chartered
Standard Chartered, a prominent British bank, recently released an optimistic report about the future of the cryptocurrency market. They predict that the total market capitalization of digital assets could expand significantly, hitting as much as $10 trillion by the end of 2026. This projection suggests an increase of nearly four times the current market value.
In their analysis, the bank forecasts a similar surge in digital asset prices as seen in 2021. They believe this upcoming period will witness substantial price growth and the emergence of new sectors within the crypto landscape. This time around, however, they expect real-world applications of cryptocurrencies to become more mainstream.
Standard Chartered reaffirmed previous predictions that Bitcoin might reach a price of $200,000 by the close of next year, while Ethereum could exceed $10,000. These target prices represent a significant rise from Bitcoin's current valuation of about $76,500 and Ethereum's approximate price of $2,950.
A considerable portion of this optimism is linked to Donald Trump's expected return to the presidency. Following his recent election victory, he is anticipated to enact a host of pro-crypto policies alongside a Republican majority in Congress. Trump's campaign included numerous promises focused on the crypto sector, boosting confidence in its growth.
The bank believes Trump and his supporters in Congress will waste no time instituting changes that positively affect the cryptocurrency market. Potential actions could include the repeal of regulations that have discouraged banks from engaging in cryptocurrency custody, the introduction of new stablecoin legislation, and loosening the tightening grip of the U.S. Securities and Exchange Commission (SEC) on crypto assets.
Additionally, there’s discussion about Trump potentially creating a U.S. government Bitcoin reserve, although Standard Chartered considers this scenario to have a low probability.
Standard Chartered emphasizes that the anticipated changes in U.S. regulation will be crucial for propelling the next wave of growth in digital assets. Alongside these expected developments, the bank notes additional trends in the cryptocurrency market over the next couple of years.
Interestingly, despite Bitcoin's increasing price, it is expected to lose some of its dominance in the crypto market. Currently, Bitcoin represents roughly 60% of the entire cryptocurrency ecosystem, but Standard Chartered predicts this share may shrink to about 40% by 2026.
The anticipated expansion in the value of alternative cryptocurrencies, or altcoins, is expected to be fueled by various real-world applications for crypto tokens. Standard Chartered believes that digital assets with clear utility and end-user demand are likely to thrive. They specifically highlight the potential for Solana to outperform both Bitcoin and Ethereum in the coming years.
The bank anticipates several growth drivers for altcoins, including innovations in gaming, decentralized physical infrastructure, and consumer social products on the blockchain.
In conclusion, Standard Chartered presents a bullish outlook on the cryptocurrency market influenced by political changes and technological advancements that may pave the way for significant growth in digital assets.
Bitcoin, Trump, Crypto