A Republican sweep in the upcoming election could have a significant impact on the crypto market, potentially leading to a total market cap of $10 trillion by the end of 2026. This projection comes from a recent report by Standard Chartered, an investment bank.
The bank highlighted the positive changes expected for the crypto market early in the new administration, citing potential regulatory changes and a shift in positions at the Securities and Exchange Commission (SEC) that could result in a more favorable stance towards digital assets.
According to Geoff Kendrick, head of digital assets research at Standard Chartered, these developments could cause the total crypto market cap to increase fourfold from its current $2.5 trillion to $10 trillion by 2026. Kendrick also mentioned that digital assets with strong end-use cases are likely to benefit the most from this growth.
The report also mentioned the possibility of the new administration creating a bitcoin reserve, although it is considered a low-probability event with high potential impact. Standard Chartered reiterated its price targets for bitcoin and ether, expecting bitcoin to reach around $200,000 and ether to hit $10,000 by the end of 2025. Additionally, solana (SOL) is predicted to outperform the two largest cryptocurrencies.
“With a Republican sweep in the U.S. election now looking likely, we believe we have entered the crypto summer,” Kendrick wrote in the report.
It’s important to note that the bank’s projections are based on various factors and assumptions, and the actual outcomes could differ based on a range of variables. However, the overall sentiment is optimistic about the growth potential of the crypto market under a new administration that is supportive of digital assets.
As the crypto market continues to evolve and attract more attention from investors and regulators, it will be interesting to see how these forecasts play out in the coming years. The intersection of politics, regulations, and technology in the crypto space is a complex landscape that requires careful monitoring and analysis to navigate successfully. Investors and stakeholders in the industry will need to stay informed and adapt to the changing dynamics to capitalize on the opportunities presented by this evolving market.
