Originally published on: July 31, 2024
In a significant development, the United States’ national debt has exceeded $35 trillion for the first time, causing apprehensions about the economy’s stability. However, analysts are suggesting that this rising debt could actually drive a surge in Bitcoin adoption as a form of ‘hard money.’
The Rise of Bitcoin Amidst Economic Uncertainty
Matt Bell, CEO of Turbofish, highlights that during times of currency devaluation, investors typically turn to safe-haven assets such as Bitcoin and gold to safeguard their wealth. Bitcoin has shown a historical tendency to increase in value during periods of financial turmoil.
Implications for Bitcoin’s Price Momentum
Experts predict that the mounting US national debt might propel Bitcoin prices to reach new record highs. As government bonds become less appealing due to the substantial allocation towards debt servicing rather than productive sectors, Bitcoin stands to benefit.
The Role of a ‘Hard Currency’ in Mitigating Debt Crisis
Analysts from Bitfinex emphasize that if the US dollar operated as a ‘hard currency’ with a finite supply, it could avert an impending debt crisis. The current scenario suggests a potential breakout for Bitcoin, especially as concerns surrounding the traditional fiscal system grow.
Anticipated Price Movement and Market Outlook
Amidst these developments, popular crypto analyst Rekt Capital anticipates a potential breakout for Bitcoin in September, driven by rising apprehensions within the legacy fiscal system. This momentum has already seen Bitcoin’s price rise by over 8.3% in the past month, trading at approximately $66,000 as of July 31.
As Bitcoin continues its upward trajectory, surpassing $35 trillion in national debt could be the impetus needed to position Bitcoin as the next preferred ‘hard money’ asset amidst global economic uncertainties.
The latest news on Trump’s Bitcoin advocacy, spot Ether ETF debut, and more can be found in the Hodlers Digest, dated July 21-27.
