Standard Chartered: Bitcoin Targets $150,000 as Fed Policy Could Drive Cryptocurrency Markets

The risk of U.S. fiscal dominance from the Federal Reserve's monetization of government debt is on the rise, and investors may seek alternative assets, including cryptocurrencies, which would be good for cryptocurrencies, Standard Chartered reportedly said in a research note.

The report also noted that Trump's second-term administration could push for a more supportive regulatory environment if he wins the election, which is positive for digital assets. Trump's return to the White House could accelerate the withdrawal of official foreign buyers from the U.S. Treasury market due to fiscal concerns.

Foreign investors sold off an average of $207 billion of U.S. debt annually during Trump's first term, compared to $55 billion during the Biden administration. Standard Chartered reiterated its year-end $150,000 target price for bitcoin, as well as its year-end 2025 target price of $200,000. Bitcoin prices are positively correlated with the steepening of the U.S. bond yield curve, rising inflation expectations and an increase in the term premium, according to the report.