Blockchain
‘Worst in History’: Bitcoin Suddenly Falls Toward $1.9 Trillion Shock After Massive Price Crash
Bitcoin has stabilized after this week’s sudden price crash, although “extreme fear” threatens to cause further problems.
The price of bitcoin has fallen to lows not seen since February as Mt. Gox Bitcoin Exchange Collapse Begins to Shift What Could Be a Bitcoin Wave.
Now, as Federal Reserve Chairman Jerome Powell warned of a “critical period,” Bitcoin price braces for the U.S. budget deficit to rise 27% next year to $1.9 trillion, a factor some believe could support the price of bitcoin.
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US Treasury Secretary Janet Yellen has already sounded the alarm about the growing US public debt of $34 trillion… [+] a figure that some believe could push the price of bitcoin to $1 million in the next 18 months.
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“Until the government stops spending like drunken sailors… bitcoin as a basic asset makes all the sense in the world to me,” said Michael Novogratz, CEO of cryptocurrency-focused financial services firm Galaxy Digital, said CNBC, adding that both former President Donald Trump and President Joe Biden “have been the two worst presidents in terms of debt growth in the history of our country.”
Biden has faced growing calls to step aside and make way for a new Democratic Party candidate to challenge former President and presumptive Republican nominee Donald Trump this week.
The odds of Biden dropping out of this year’s White House race have suddenly jumped 62% in recent days on cryptocurrency prediction platform Polymarket.
Last month, Treasury Secretary Janet Yellen has issued a serious warning about the spiraling US debt of 34 trillion dollars which some believe could send the price of bitcoin to $1 million in the next 18 months.
According to a recent estimate, interest payments on U.S. debt are expected to reach $870 billion this year. analyses from the Congressional Budget Office, after soaring inflation prompted the Federal Reserve to raise interest rates at an unprecedented pace, following massive spending and money printing during the Covid era.
This month, the Congressional Budget Office added that the U.S. budget deficit is expected to rise 27 percent next year, to $1.9 trillion.
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The price of bitcoin has fallen from its recent all-time high of over $70,000 per bitcoin.
Forbes Digital Assets
Earlier this year, Bank of America analysts warned that the U.S. debt load is on track to add $1 trillion every 100 days—potentially fueling a surge in the price of bitcoin.
“The U.S. national debt is increasing by $1 trillion every 100 days,” Michael Hartnett, chief strategist at Bank of America, wrote in a note to clients. view from CNBC, adding that “it’s no wonder ‘debt write-down’ trades are near all-time highs.”
Hartnett predicted that the new spot bitcoin exchange-traded funds (ETFs) that have taken Wall Street by storm over the past month are on track for an “explosive year,” in part because of the U.S. dollar’s collapse.