The US 10-year bond auction that took place on Wednesday showed that confidence in US borrowing remains, while Bitcoin (BTC) and gold investors are closely monitoring this situation.
Due to the increasing debt burden of the US in recent times and the trade wars initiated by President Donald Trump in April, there were comments that investors would move away from US bonds and turn to Bitcoin and gold. However, the demand exceeding 2.5 times the supply in the 39 billion dollar 10-year bond auction that took place on Wednesday weakened these comments.
While the interest rate of the bonds offered in the auction was announced as 4.421%, it was noteworthy that primary dealers only took a 9% share. This rate stood out as the fourth lowest level so far, indicating that investors are strongly leaning towards bonds.
Is the increasing debt of the US benefiting Bitcoin?
As of June, the total national debt of the US has exceeded 36 trillion dollars. This figure surpasses 120% of the country's Gross Domestic Product (GDP). In 2024, the budget deficit of 1.8 trillion dollars is expected to rise to 2.4 trillion dollars in the coming years due to tax cuts from the Trump administration.
The money that the US spends just to pay the interest on its debts has reached an annual amount of 1 trillion dollars. Analysts emphasize that in the event of a deepening debt crisis, Bitcoin (BTC) and gold will be important safe havens for investors.
The 22 billion dollar 30-year bond auction to be held on Thursday will be an important indicator of investors' confidence in US fiscal policies. This auction may provide clearer signs regarding the direction of the markets.
