Under these circumstances, digital assets may benefit from a second term under former President Donald Trump.

According to the research, "We believe that a more supportive regulatory environment under a second Trump administration would be broadly positive."

Analyst Geoff Kendrick of Standard Chartered noted that Bitcoin may be a useful hedge against de-dollarization and declining trust in US Treasuries.

"Three likely consequences of U.S. fiscal dominance on the Treasury curve are a steeper nominal 2-year/10-year curve, a greater increase in breakevens than real yields, and an increase in term premium," Kendrick continued, emphasizing the strong association between these trends and Bitcoin (BTC).

According to the data, during President Trump's first term, the average yearly net sale of US government debt was $207 billion, whereas under President Biden it was $55 billion.

Standard Chartered anticipates that a second Trump administration will support Bitcoin and digital assets through loosened regulations and the adoption of U.S. spot ETFs, in addition to the passive advantage that de-dollarization will bring to the cryptocurrency.

In an interview with CNBC earlier this year, Trump expressed his openness to the cryptocurrency space and stated that he would not want to see it banned. The former president acknowledged Bitcoin's growing popularity even though he did not possess any of the cryptocurrency.

Standard Chartered reaffirmed its estimates for the value of Bitcoin, predicting a price of $150,000 at year's end and as much as $200,000 by the end of 2025.