Key Takeaways
- A Trump victory in the 2024 election could extend corporate tax cuts.
- Global liquidity recovery is a key factor for Bitcoin's market performance.
- The Federal Reserve's balance sheet growth is expected to resume by 2025.
If former U.S. President Donald Trump wins the 2024 presidential election, the extension of corporate tax cuts could positively impact Bitcoin, according to macroeconomist Lyn Alden.
These tax cuts, initially approved during Trump’s first term, are set to expire soon. However, Alden believes that a Trump victory would likely lead to their extension, benefiting the Bitcoin market.
Alden explained in an interview with Cointelegraph:
The market might be saying that a Trump victory increases the odds of those tax cuts remaining in effect or becoming permanent.
Alden also emphasized the role of global liquidity in influencing Bitcoin markets. She noted that global liquidity has been recovering recently and pointed to projections from the New York Federal Reserve. According to Alden, the U.S. Federal Reserve’s balance sheet growth is expected to resume by 2025, or at least stop shrinking. This could significantly boost Bitcoin prices.
Alden concluded:
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.
