07/06/2025
Bitcoin and cryptocurrency prices have risen this year, driven by support from U.S. President Donald Trump and adoption by Wall Street (as Elon Musk, the Tesla billionaire, returns to the forefront of the cryptocurrency market this week).
After sharply recovering from its lows in April, the price of Bitcoin has stabilized above $100,000 since early May, even after BlackRock issued a serious warning about Bitcoin.
Now, with growing concerns about a "catastrophic" collapse of the U.S. dollar, Jim Esposito, head of Citadel Securities, warned that the pile of accumulated U.S. debt at $37 trillion is a "ticking time bomb" - adding to similar warnings that some believe could lead to a sharp rise in Bitcoin's price.
Esposito said at the Piper Sandler Global Trading and Exchange Conference, in remarks reported by Reuters: "The accumulation of debt and budget deficit is a ticking time bomb."
"No one has the intelligence to predict exactly when this crisis will emerge. We've been talking about this for over 20 years, so it seems the market has entered a state of complacency, but over many years, we can pinpoint that."
Esposito added that Citadel Securities, the Wall Street market-making giant founded by hedge fund billionaire Ken Griffin, plans to ramp up its trading in Bitcoin and cryptocurrencies this year in anticipation of a new regulatory framework for cryptocurrencies.
Esposito added: "Cryptocurrencies are a field we will undoubtedly expand into, and we are excited about the future prospects."
The worsening U.S. debt crisis, which has significantly strained the relationship between Elon Musk and President Trump this week, is exacerbated by massive government spending during lockdowns due to the COVID pandemic.
The rise in U.S. debt comes as the Federal Reserve, led by its chairman Jerome Powell, keeps interest rates steady despite Trump's pressures, and the bond market experiences sharp fluctuations indicating dwindling investor confidence in the U.S.
Economic and monetary uncertainty has pushed some traders and companies towards Bitcoin, leading to a wave of positive expectations for its price.
Jeffrey Kendrick, an analyst at Standard Chartered, wrote in a memo via email: "The prevailing picture of Bitcoin has changed again. It was about the correlation with risky assets... then it became a means of centralization to redistribute strategic assets away from American assets."
Kendrick predicted that the price of Bitcoin would rise to $500,000 by the end of Trump's presidency in early 2029, due to its American strategic reserve of Bitcoin and the end of suffocating regulatory measures that would lead to more companies buying Bitcoin.
Seamus Roca, CEO of Zabo Bank, which specializes in Bitcoin and cryptocurrency custody, said in comments via email: "Institutions are strengthening their presence in the Bitcoin market, building their Bitcoin reserves."
"Whether you're looking at institutional flows or individual behaviors, the message is the same: conviction in the long-term value of Bitcoin is solid and growing."
Forbes