Bitwise, a cryptocurrency investment company, recently reported that Bitcoin's price is expected to break $200,000 by the end of the year, with fair value likely reaching $230,000. It is noteworthy that the main rationale behind this forecast is not traditional technical indicators, but rather the severe fiscal situation in the United States and the continuously expanding federal debt.

U.S. Debt Pressure: A New Driver for the Bitcoin Bull Market?

Bitwise analysts André Dragosch and Ayush Tripathi analyzed in the latest weekly cryptocurrency market outlook report that the current fiscal policy in the United States is creating a highly favorable macroeconomic environment for Bitcoin. The report mentions that U.S. federal debt is skyrocketing, mandatory spending has exceeded government revenue, and the tax reduction proposal known as the 'One Big Beautiful Bill Act' suggested by former President Trump may exacerbate the fiscal situation.

In fact, according to data from the U.S. Congressional Budget Office (CBO), by 2030, the net interest payments in the U.S. are projected to triple to an astonishing $3 trillion, raising market concerns about potential sovereign defaults. Bitwise analysts believe that in this context of fiscal instability, Bitcoin, with its scarcity and resilience, along with its decentralized nature, becomes a unique tool for hedging against sovereign risk.