The British bank Standard Chartered projects a significant increase in the price of bitcoin (BTC), reaching USD 125,000, in response to the recent results of the elections in the United States where Republicans have taken control of both the Presidency and Congress .
On November 5, Donald Trump won the Presidency, adding to his victory control of the Senate and the Lower House by his party. The Senate has returned to Republican hands after four years, with 52 Republican senators compared to 42 Democrats, according to data from the Associated Press.
In the Lower House, Republicans secured 198 seats, while Democrats won 180.
In its latest report, Standard Chartered projected that if Republicans gained control of Congress, bitcoin could reach $125,000 before the end of 2024. This prediction is based on the expectation of more favorable policies towards cryptocurrencies under the Republican administration.
As of last month, Standard Chartered anticipated that BTC will end the year at an all-time high, regardless of the election result. However, the Republican victory has catalyzed an even more pronounced movement in the market.
Bitcoin broke its all-time high this Wednesday, reaching $75,300, entering territory previously unexplored by the digital currency.
Price projections for bitcoin have varied, but Trump’s victory has been seen by some analysts as an additional boost. A previous report by Bernstein, also picked up by CriptoNoticias, suggested that bitcoin could reach USD 90,000 with a Trump victory, indicating a growing consensus on the positive influence of a Republican administration on the value of BTC.
This rise in the price of bitcoin not only reflects market confidence in Trump’s economic policies, but also in a possible more favorable regulatory environment for BTC and cryptocurrencies.
It should be noted that the Republican victory in Congress, in addition to the presidency, is essential so that Donald Trump can carry out his promises related to bitcoin and other policies without too many obstacles, for several key reasons.
First, creating a strategic BTC reserve would require specific legislation. With a Republican majority in Congressit could facilitate the passage of laws that allow the government to acquire and maintain coins.
Additionally, regulation by the Securities and Exchange Commission (SEC) is crucial. Trump has expressed a desire to replace current SEC Chairman Gary Gensler, known for his lobbying approach to cryptocurrencies, with someone more sympathetic to his policies. A Republican Congress could confirm a new SEC chairman that favors the growth of the sector, simplifying the regulatory process.
Deregulation is another pillar. Deregulation policies or simplification of current rules that could boost the adoption and use of cryptocurrencies would move more quickly with a Congress that has historically shown a leaning toward free market policies and less government intervention.
As for funding and fiscal support, proposals like bitcoin accumulation would need funding. A Republican-controlled Congress could allocate these resources or modify tax laws to support such initiatives without facing the obstacle of significant opposition.
All of the above summarizes the idea that the Republican victory in both houses of Congress, in addition to the presidency, not only facilitates the legislative process, but also ensures a more favorable environment for the execution of ambitious cryptocurrency policies.
This article was created using artificial intelligence and edited by a human Editor.
