Originally published on: July 18, 2024
As the world eagerly anticipates the upcoming US presidential elections, renowned macroeconomist Lyn Alden has offered a compelling insight into how a potential victory for former President Donald Trump could have significant implications for the cryptocurrency space. Alden suggests that a Trump win could result in the extension of corporate tax cuts, a move that would likely bode well for crypto markets.
Extending Tax Cuts to Favor Crypto
During Trump’s initial presidential term, he implemented favorable corporate tax cuts that are set to expire soon. However, Alden believes that if Trump secures a second term, these tax breaks are likely to be prolonged. In an interview with Cointelegraph, Alden pointed out that market sentiment indicates a Trump victory could increase the chances of the tax cuts becoming a permanent fixture, presenting a positive outlook for crypto markets.
Global Liquidity and Its Impact on Crypto
Despite the potential influence of US politics on crypto markets, Alden emphasizes that the primary macroeconomic driver for cryptocurrencies remains global liquidity. In recent months, there has been a gradual resurgence in global liquidity levels, signaling positive news for the crypto space.
Reviving Federal Reserve Balance Sheet Growth
Alden references projections from the New York Federal Reserve, suggesting a revival in the growth of the US Federal Reserve’s balance sheet by 2025. This anticipated development, or at least a halt in the shrinking of the balance sheet, could potentially propel the price of Bitcoin and other cryptocurrencies to new heights.
Future Outlook and Potential Growth
In her analysis, Alden predicts a breakout in the crypto market in the near future, anticipating significant growth in the price of Bitcoin. Whether this breakout occurs later this year or in the coming years, Alden remains optimistic about the potential for substantial growth.
Engage with Alden’s Insights
For a deeper dive into Alden’s macroeconomic analysis and her projections for the crypto market, be sure to catch her latest interview on Cointelegraph’s YouTube channel. Stay informed and subscribe for more fascinating insights into the world of cryptocurrency and global economics.
