Normally, the government should still (borrow new debt to repay old debt) by issuing new government bonds to repay old debt. This time, they should convert short-term bonds into long-term bonds, which would extend the risk of default. #美国国债
But a problem arises? Are there other countries willing to buy long-term government bonds? Because the current global situation is very tense,,,,,,
Impact of maturing government bonds on cryptocurrencies:
Short-term: A normal government financing and issuing a large amount of new bonds will have a significant siphoning effect on market liquidity, pulling funds into new government bonds.
The cryptocurrency market is expected to see a withdrawal of some liquidity. Investors should remember not to over-invest and should establish reasonable investment strategies to effectively cope with the risk of market liquidity being siphoned off.
Long-term: The demand for stablecoins in the cryptocurrency market will grow significantly, and the passage of the (GENIUS Stablecoin Act) will also promote the growth of stablecoins, thereby boosting the overall liquidity of the cryptocurrency market.
Summary: Opportunities lie within risks; reasonable responses are the key.
