The US government has until 1st June to reach an agreement on raising the debt ceiling. If the US government’s failure to reach an agreement will trigger a catastrophic wave in the US and global economy.
However, the US defaulting on its debt could mean a pump in bitcoin’s price. If the US government fails to raise the debt ceiling, the stock markets are expected to crash leaving investors stranded.
Bitcoin expected to catch exit-fiat bid
Messari founder Dan McArdle tweeted that he had thought US default would result in temporary BTC crash, ensuing chaos & liquidity crunch, but now, especially after BTC’s response to the bank failures, it could catch the exit-fiat bid it deserves. Traditional finance investors might look at Bitcoin as a safe heaven. At the start of the year, when banks were collapsing one after another, bitcoin stood strong as it did not lose by much. This could give investors confidence in moving their funds to bitcoin.
Bitcoin to jump by 70% on US debt default: Standard Chartered analyst
Earlier, Geoff Kendrick, Standard Chartered’s head of digital assets research told Insider that a U.S. default—which he called a “low-probability, high-impact event”—could cause Bitcoin to jump by about $20,000, an increase of nearly 70% from current levels. Kendrick also said in a note Bitcoin could reach $100,000 by the end of 2024 and the “crypto winter” was over.
Bloomberg’s latest Markets Live Pulse survey named Gold, U.S. Treasurys and Bitcoin as the top three assets should the U.S. fail to raise its debt ceiling and default on its debt.
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