Bitcoin

Bitcoin stands to gain from US fiscal dominance, Trump victory: StanChart

Published

9 months ago

12 May, 2024

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There is a growing risk of fiscal dominance in the US, with ever-increasing debt and deficits likely on an unsustainable path, and that should be good news for bitcoin (BTC-USD), according to Geoff Kendrick of Standard Chartered. Donald Trump’s victory in the presidential election would also be a boon for digital assets, he added.

Fiscal dominance is an economic condition that occurs when governments’ fiscal actions overshadow the independence of monetary policy. This, in turn, potentially harms the ability of central banks to control inflation, as they would be forced to accommodate government spending.

Such a scenario would likely have several implications for the Treasury yield curve:

The yield spread between the 2 years (USA2A) account and the 10-year invoice (US10A) the grade increases, in a movement that accentuates the difference in performance;
A greater increase in inflation break-even points (a market-based measure of expected inflation derived from the spread between the yield on a nominal bond and an inflation-indexed bond with the same maturity) than inflation-adjusted yields; It is
A higher-term premium, the extra return that investors require for holding longer-term bonds rather than shorter-term bonds.

The price of bitcoin (BTC-USD) has a strong relationship with each of these three effects, Kenrick wrote in a recent note to clients.

“In a scenario of US fiscal dominance, we believe BTC would provide a good hedge against de-dollarization and declining confidence in the UST market,” he added.

JPMorgan Chase (JPM) CEO Jamie Dimon, a longtime bitcoiner (BTC-USD), critic, appears to agree with Kendrick’s assessment of fiscal dominance. He said in a chat last month that the The US economy is “booming” but this is largely driven by outsized government spending. The tradeoff with a debt-fueled economy is inflation, he added.

In addition to the prospect of the US dollar losing its dominance as a global reserve currency, bitcoin (BTC-USD) typically performs well relative to traditional financial assets when the banking system is under pressure, or when central banks monetize public debt through quantitative easing, the StanChart note noted. Increasing geopolitical risk, however, does not bode well for the token.

Furthermore, many people argue that bitcoin (BTC-USD) is a good hedge against inflation. The token’s overall bullish trend may support this popular notion, but there have been some recent cases where the price actually fell, or barely reacted, following a hot inflation reading.

A Trump election victory should also be positive for bitcoin (BTC-USD), Kendrick argued, through “more flexible regulation and approval of U.S. spot ETFs.”

While the Biden administration has taken a more stringent approach to encryption, Trump has said that he wouldn’t repress about the use of bitcoin (BTC-USD) or other digital tokens if elected president again.

In all, Kendrick reiterated his price targets for bitcoin (BTC-USD): US$ 150 thousand by the end of 2024 and US$ 200 thousand by the end of 2025. average SA analyst thinks BTC is a buy (1 strong buy, 9 buys, 3 holds, 1 sell).

In Saturday afternoon trading, bitcoin (BTC-USD) changed hands for US$61.3 thousand, down 13% M/M, an increase of 45% year-to-date and 122% compared to the previous year. BTC reached an all-time high of more than $73,000 in March but has since retreated as market participants lowered their rate cut expectations in the face of tough inflation data.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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