The cryptocurrency investment company Bitwise recently reported that the price of Bitcoin is expected to break $200,000 by the end of the year, with a fair value potentially reaching $230,000. It is noteworthy that the main basis for this prediction 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 Catalyst for the Bitcoin Bull Market?

In the latest weekly cryptocurrency market outlook report, Bitwise analysts André Dragosch and Ayush Tripathi analyze how 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 soaring, mandatory spending has exceeded government revenue, and former President Trump's proposed "One Big Beautiful Bill Act" tax cut could 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 an astonishing $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.