Global Financial Exodus! $37 Trillion U.S. Debt Crisis, Only Bitcoin is the Ark!
U.S. national debt has surpassed $37 trillion and is still skyrocketing. What does this mean? The U.S. government is spending money like water and cannot stop, but money doesn’t come for free; it either means higher taxes (the common people suffer) or insane money printing (dollar depreciation).
Dollar depreciation expectations → Bitcoin and gold soar
The higher the national debt, the more likely the Federal Reserve will 'loosen' (print money to pay off debt), leading to a decrease in the dollar's purchasing power, and funds will flow into inflation-resistant assets. Case study: In 2020, U.S. debt soared, the Federal Reserve flooded the market with money, and Bitcoin skyrocketed from $3,800 to $69,000!
U.S. Debt Crisis → Funds flee to decentralized assets
If the market loses confidence in U.S. debt (for example, if interest rates are too high to repay), institutions may treat Bitcoin as 'digital gold' to hedge against risks. Personal opinion: This $37 trillion is not the end; it may surpass $40 trillion by 2025, making Bitcoin's 'hard cap' of 21 million coins even more appealing!
Federal Reserve Policy → Major fluctuations in the crypto market
If the Federal Reserve continues to raise interest rates (to control inflation), it will be bearish in the short term; but if the economy can't hold on and rates are lowered, Bitcoin may take off directly. Key indicator: Keep an eye on the 10-year U.S. Treasury yield; if it breaks 5%, market panic will drive up BTC demand.
The U.S. debt bomb countdown is on. Will you continue to hold the constantly depreciating dollar or strategically invest in Bitcoin? Is the crypto space too deep? Let Qiongqi guide you in exploring! Follow me for sneak peeks of market trends!
