Potential Trump victory and rising global liquidy may benefit crypto, analyst says

Marco Castrovilli7 hours agoPotential Trump victory and rising global liquidy may benefit crypto, analyst saysMacroeconomist Lyn Alden assesses the potential impacts of the 2024 US presidential election outcome on Bitcoin and the broader crypto industry.709 Total views2 Total sharesListen to article 0:00Cointelegraph YouTube SubscribeOwn this piece of crypto historyCollect this article as NFTJoin us on social networksMacroeconomist Lyn Alden argues that if former United States President Donald Trump is victorious in the upcoming US presidential elections, it could lead to the extension of corporate tax cuts, which in turn could favor the crypto markets. 

These tax cuts, which were approved during Trump’s first presidential term, are due to expire soon but are likely to be prolonged if Trump is elected again. 

“The market might be saying that a Trump victory increases the odds of those tax cuts remaining in effect or becoming permanent,” Alden pointed out in an interview with Cointelegraph.

That means that “all else being equal, potentially larger deficits [...] can be stimulatory for parts of the market,” she stated.

However, according to Alden, the most important macroeconomic factor affecting crypto markets remains global liquidity, which has been gradually recovering in recent months. 

Referencing projections by the New York Federal Reserve, Alden expects a resumption in the US Federal Reserve’s balance sheet growth by 2025, or “at least no longer shrinking of the balance sheet.” That could drive the price of Bitcoin (BTC) significantly higher. 

“I do think that we are probably breaking out now, and if not, then I would expect a breakout either later this year or through 2025,” she concluded. 

To hear more of Alden’s macroeconomic analysis, don’t miss this latest interview on Cointelegraph’s YouTube channel, and don’t forget to subscribe!# Bitcoin# Cryptocurrencies# Central Bank# Bitcoin Price# Markets# US Government# Elections# Donald Trump# Liquidity# Market ReleaseAdd reaction