A Standard Chartered report warns that the growing risk of U.S. fiscal dominance due to the Federal Reserve’s potential debt monetization could drive investors to cryptocurrencies.

In this context, a second term under former President Donald Trump might benefit digital assets.

“We think that a second Trump administration would be broadly positive via a more supportive regulatory environment,” the report said.

Standard Chartered analyst Geoff Kendrick emphasized that Bitcoin could offer a valuable hedge against de-dollarization and waning confidence in U.S. Treasuries.

“A steeper nominal 2-year/10-year curve, a greater increase in breakevens than real yields, and an increase in term premium are three probable consequences of U.S. fiscal dominance on the Treasury curve,” Kendrick added, highlighting Bitcoin’s (BTC) positive correlation with these developments.

The report noted that Trump’s previous term saw an average annual net selling of U.S. government debt totaling $207 billion, versus $55 billion under President Biden.

Aside from the passive benefit to Bitcoin due to de-dollarization, Standard Chartered expects a second Trump administration to promote Bitcoin and digital assets through relaxed regulations and the approval of U.S. spot ETFs.

Earlier this year, Trump spoke with CNBC about cryptocurrency, showing openness to the sector and noting that he wouldn’t want to take it away. Despite not owning any Bitcoin, the former President said he recognized its increasing popularity.

Standard Chartered reiterated its projections for Bitcoin’s value, forecasting a year-end price of $150,000 and up to $200,000 by the end of 2025.