Can Bitcoin Benefit from the US Debt Crisis?
Channel: BTC Lighthouse
Date: 2023-04-15

#shorts 

How big is the US debt and what does it means for Bitcoin? Let's take a closer look.

The US government needs a lot of money for things like defense, healthcare, education, and infrastructure. But it needs more money than it can generate with taxes. So it raises debt by issuing Treasury securities and bonds.

As of now, the total outstanding Federal debt is over $31 trillion. That's big! But the debt has grown faster than the GDP and currently is at 120% of GDP and that’s bad.

The fact that the US is creating a lot of debt and having higher interest rates to combat inflation has increased the interest payment on the debt by a lot. 

So is this good or bad for Bitcoin? Well, we don’t expect US defaulting on its debt anytime soon. But high rates aren't at the advantage of the Fed when the time comes to raise new debt. This is good for risk assets, this is good for Bitcoin. To be long Bitcoin is a pretty good place to be in provided that you can tolerate volatility over the next 12 months.