$ETH 🔥 A record deficit hits the American economy... Is it time for crypto to take off? 💰🚀
📌 The impact of the American budget deficit on the crypto market
1️⃣ Increase in debt = Pressure on the dollar 💵
📉 A deficit of -291.1 billion dollars means the U.S. government has to borrow more, which weakens the dollar's strength over time. A weaker dollar supports gold and Bitcoin.
2️⃣ Possibility of changing interest rate policy 🏦
📊 Continued rise in debt may push the Fed to ease monetary tightening and lower interest rates, which injects more liquidity and supports crypto.
3️⃣ Investor confidence 📈
🔑 Large deficit numbers make investors seek alternative assets for hedging, with Bitcoin being one of the most prominent options.
4️⃣ Immediate impact on the market ⚡
⏳ The instantaneous effect is limited compared to inflation or interest rates, but in the medium to long term, a large deficit is relatively positive for crypto.
💡 Summary:
The current deficit is negative for the dollar in the long term and tends to be positive for Bitcoin and digital currencies, especially if accompanied by more flexible monetary policies.