Bitcoin on path to $500,000 after Trump reserve plan after worst month since 2022: Standard Chartered

On Sunday, Donald Trump paved the mode for Bitcoin to deed $500,000 by sharing much details astir his planned national crypto reserve.

That’s according to UK slope Standard Chartered’s Global Head of Digital Assets Research, Geoffrey Kendrick.

He argued that the rally triggered by the president’s announcement signals that the White House is actively putting its thumb connected the scales successful favour of integer assets.

This is “the archetypal coagulated information constituent of a Trump Put for crypto,” wrote Kendrick, suggesting that similar the Federal Reserve, Trump volition measurement successful to buoy markets if they driblet sharply.

Trump’s announcement came against the backdrop of protracted antagonistic sentiment successful the crypto markets.

That was due to a confluence of factors including renewed fears implicit tariffs, the largest hack successful crypto history, impatience implicit Trump’s crypto argumentation timeline, and the winding down of a favourite commercialized among Bitcoin traders.

$3.2 trillion

The crypto marketplace jumped 11% aft Trump said he’d similar the reserve to see Bitcoin, Ethereum, XRP, Solana, and Cardano. The full worth of each crypto is worthy astir $3.2 trillion.

The president announced plans to research a crypto stockpile successful a January enforcement order.

Bitcoin fell astir 17.5% successful February, which Kendrick said was the cryptocurrency’s worst period since June 2022.

”And past the play was the champion play since January 2021,” helium said.

This, Kendrick argued, means traders whitethorn trust connected Trump to assistance creaseless retired worst-case scenarios from analysts’ models.

“Markets tin present borderline higher,” helium said, arguing that Standard Chartered’s erstwhile prediction that Bitcoin volition deed $500,000 astatine the extremity of Trump’s word is inactive precise overmuch successful play.

Trump’s much crypto-friendly authorities volition thrust the surge, arsenic volition much wealth flowing into the spot Bitcoin exchange-traded funds, according to those estimates.

Kendrick besides cited the imaginable for a US strategical reserve to spur different governments, whether US states oregon sovereign nations, to make their ain reserves.

The determination could enactment arsenic “a span to plans by the states successful the US to advancement their ain BTC reserve plans,” wrote Kendrick. “And possibly a span to a spot wherever different sovereigns articulation Abu Dhabi successful buying Bitcoin arsenic well.”

There are respective states pursuing a Bitcoin Strategic Reserve, though lone two, Utah and Arizona, have made important progress successful establishing one.

The US Crypto Czar, David Sacks, plans to denote details astir the reserve during a “crypto summit” planned successful Washington connected Friday.

Andrew Flanagan is simply a markets analogous with DL News. Have a tip? Reach retired to [email protected].