Crypto markets have seen great trading sessions ever since the Bitcoin ETFs came into play. However, another big factor that can result in a huge price rally, is the rising US debt. The overall US debt currently stands at $34.5 trillion. The huge number has created worries around the debasement and authenticity of government assets.
Rising US Debt to Help Crypto Rally
The US debt is at an all-time high right now. Investors have become cautious about traditional financial markets as a result of this, as well as uncertainty around the Fed’s decision to decrease interest rates and the devaluation of currencies. The Bitcoin markets have so far shown resilience in the face of rising volatility and financial strain. Furthermore, data suggesting possible short-term market volatility suggests that government assets could weaken and decrease. In a situation such as this, cryptocurrency markets are likely to surge as investors shift their capital into the virtual currency space.
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US Debt Raises Concerns of Debasement
Previously, investors poured the most money into technology equities since August and increased their investment in cryptocurrencies, according to a Bank of America Global Research survey, as reported by Reuters. As investors rushed to exchange-traded funds, the amount of money flowing into cryptocurrencies climbed to $2.4 billion in the most recent week from $1.2 billion the week before, bringing Bitcoin closer to all-time highs of about $73,000. Since the rising US debt creates worries about currency debasement, people are more likely to try to find a decentralized option. In such a scenario, Bitcoin has emerged as a worthy option.
What Will Happen to Crypto Markets?
Given the decline in interest in government assets, the future of the cryptocurrency markets appears bright. Many cryptocurrencies appear to have a promising future as of right now, with Bitcoin leading the way. Several establishments have been wagering that the original cryptocurrency will eventually see a price hike. This includes Bitwise’s forecast that in 2024, the price of Bitcoin will surpass $80,000. For at least the first half of 2024, institutional investment in Bitcoin will be the main focus, according to Coinbase.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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