Bitwise, a cryptocurrency investment company, recently reported that Bitcoin's price is expected to break through $200,000 by the end of the year, with a fair value likely reaching $230,000. Notably, the main rationale for 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 Bitcoin Bull Market?

Bitwise analysts André Dragosch and Ayush Tripathi analyzed in their latest weekly cryptocurrency market outlook report that the current fiscal policies in the United States are creating an extremely favorable macroeconomic environment for Bitcoin. The report mentions that the U.S. federal debt continues to soar, mandatory spending has exceeded government revenue, and the "One Big Beautiful Bill Act" tax cut proposal by former President Trump may exacerbate the fiscal situation.

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