The rising level of US debt and the tense economic situation are causing doubts about the dollar's stability while the cryptocurrency market shows significant growth.
Record Debt and Distrust towards the Dollar
US public debt has reached a record level of $37 trillion, raising concerns in the markets. Economist Kenneth Rogoff, who was previously skeptical about Bitcoin, admitted he was wrong and warned of the risk of losing dollar influence. In his article, he stated that 'in the medium and long term, the dollar could lose market share to the Chinese yuan, the euro, or even cryptos.' Key macroeconomic factors such as high interest rates and lack of budget reforms are weakening the dollar's position.
Crypto Alternative Amid Monetary Collapse
As concerns over the dollar rise, the cryptocurrency market is experiencing remarkable growth: Bitcoin has surpassed $124,000, and the total crypto market capitalization has exceeded $4 trillion. In the context of a possible interest rate cut, as hinted by Fed Chair Jerome Powell, interest in cryptocurrencies continues to grow.
Bitcoin's Prospects and Presidential Influence
President Donald Trump confirmed the establishment of a strategic Bitcoin reserve, reinforcing the legitimacy of cryptocurrencies in the real economy. Coinbase CEO Brian Armstrong predicts Bitcoin could reach $1 million by 2030, attributing it to growing interest from Wall Street and clearer regulation. He stated: 'We will see $1M per Bitcoin by 2030. Regulatory clarity is emerging, the US government is holding a BTC reserve, and there's growing interest in crypto ETFs, among other factors.'
Thus, amid rising debt and economic uncertainty, cryptocurrencies, particularly Bitcoin, may emerge as more attractive assets for investors seeking alternatives.
