Key Points
- Forbes writes that Donald Trump and the Fed could trigger $4 trillion in Bitcoin.
- This could send BTC to $200k by 2025.
Forbes just wrote an article highlighting how the former president of the US, Donald Trump, and the Federal Reserve could unleash $4 trillion in Bitcoin, sending the token to $200k by 2025.
Forbes also mentioned that recently, Elon Musk issued a warning saying that the US dollar could soon collapse. He posted on X that if something is not done soon about the national US debt, the US dollar will soon be worth nothing.
We need to do something about our national debt or the dollar will be worth nothing
— Elon Musk (@elonmusk) May 3, 2024
The financial analyst, Geoff Kendrick, Standard Chartered’s head of FX and crypto research, is quoted by Forbes saying that the risk of US fiscal dominance – the monetization of the government debt by the Fed – is growing as fiscal dynamics become unsustainable.
He also said that such a scenario would be broadly supportive of crypto as investors are seeking alternative assets. Kendrick highlighted that a second Trump administration would be positive and with a more supportive regulatory environment for crypto.
According to him, the likelihood of US fiscal dominance with the monetization of government debt by the Fed is growing, and this could send Bitcoin somewhere between $150k and $200k by the end of 2025.
Bitcoin is now priced at around $61k, according to our data.
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In a scenario of US fiscal dominance, BTC could offer a good hedge against the de-dollarization and the dropping of confidence in the US Treasury market. A potential Trump victory could accelerate the withdrawal of foreign official US Treasury buyers.
He continued and explained that besides the passive boost to Bitcoin from de-dollarization, a second Trump administration could be actively supportive of Bitcoin and crypto in general, “via looser regulation and the approval of US spot ETFs.”
Trump promised to accept crypto for presidential campaign
Earlier today, we reported that Trump promised to make sure that crypto can be used for donations in his campaign.
Trump met with a group of NFT buyers the other day and promised to accept crypto, as shared via multiple videos uploaded on X by Frank Degods, an NFT creator and influencer.
In a clip, Trump asked if they could donate using crypto and said that he would make sure that this became an option.
At one point during the meeting, Trump was also asked whether he would keep crypto businesses in the US, and he responded that he would work to retain them in the country.
He said that if crypto is moving out of the US because of hostility, he will stop it. Trump addressed embracing crypto and allowing it in the US, meaning that he plans on putting an end to the crypto hostility in the country.
