Bitcoin set to catch ‘Fiat exit bid’ if US defaults

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The US government has until June 1 to reach an agreement on raising the debt ceiling. The failure of the US government to reach an agreement will trigger a catastrophic wave in the US and global economy.

However, the US defaulting on its debt could mean a pump in the price of bitcoin. If the US government fails to raise the debt ceiling, stock markets are expected to crash, leaving investors stranded.

Bitcoin Should Catch Exit-Fiat Supply

Messari Founder Dan McArdle tweeted that he thinks US default will cause BTC to temporarily crash leading to chaos and liquidity crisis, but now especially after BTC’s response bank failures, he could grab the exit offer he deserves. Traditional financial investors might consider Bitcoin a safe haven. At the start of the year, as bank after bank collapsed, bitcoin was strong as it was not losing much. This could give investors the confidence to transfer their funds to bitcoin.

Bitcoin to jump 70% on US debt default: Standard Chartered analyst

Earlier, Geoff Kendrick, head of digital asset research at Standard Chartered, told Insider that a US default — which he called a “low-probability, high-impact event” — could send Bitcoin skyrocketing. of about $20,000, an increase of nearly 70% from current levels. Kendrick also said in a note that Bitcoin could hit $100,000 by the end of 2024 and that the “crypto winter” was over.

Bloomberg’s latest Markets Live Pulse survey named gold, US Treasuries and Bitcoin as the top three assets should the US fail to raise its debt ceiling and default on its debt.

Jai Pratap is a crypto and blockchain enthusiast with over three years of experience working with different major media houses. His current role at CoinGape includes creating high-impact web stories, breaking news coverage, and writing editorials. When he’s not working, you’ll find him reading Russian literature or watching a Swedish movie.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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