In June, the United States is planning a major move by borrowing new debt to pay off old debts. This will release funds, likely bringing a wave of liquidity into the cryptocurrency market. Coupled with small company stocks in the US stock market and gold, June to July may welcome a profitable trend, which we can call the "US Debt Replacement Bull Market".

What exactly is happening?

In June, the US has $6.5 trillion in old debt maturing, and it must issue at least $1.42 trillion in new debt to fill the gap. The question is, who will buy this new debt? How high do interest rates have to go for someone to be interested?

China will definitely not buy it anymore, as Trump has taken many actions against China, and in March, it already reduced its holdings of $27.6 billion in long-term US debt. Now the UK is the second-largest holder of US debt, with China falling to third. Other smaller allies are also unreliable; none of them have enough money to take over. If they force foreign buyers to take it, interest rates will skyrocket, and the US government simply cannot afford such high rates.

Now, they can only rely on the Federal Reserve to directly activate the money printing machine, printing trillions of dollars to buy bonds, forcibly pushing bond interest rates down to rock bottom. Don’t be fooled by Federal Reserve Chairman Powell’s daily hard talk about not flooding the market; in reality, there’s no choice. In the end, the Federal Reserve will definitely absorb over 90% of the new debt, while others will only buy a symbolic amount.

If this scenario materializes, it means pumping money into the market. With more money, it will flow into financial markets, including cryptocurrencies, small company stocks in the US stock market, and safe-haven assets like gold.

Although altcoins may still fluctuate up and down for now, if there are no negative factors during this period, they should not set new lows. Once the funds are in place in June to July, the altcoin bull market will continue to gain momentum.