As the U.S. national debt continues to grow, Bitcoin is increasingly viewed as a reliable store of value. Experts highlight the importance of this asset amid economic concerns.
Impact of National Debt on Cryptocurrency Market
According to assessments from experts like Markus Thielen of 10x Research, the growing budget deficit in the U.S. leads investors to pay attention to assets with limited supply. The recently passed spending bill, which was meant to enhance fiscal responsibility, is projected to increase the national deficit by up to $7 trillion over the next decade.
Shift in Perception of Bitcoin
Thielen notes that Bitcoin is no longer viewed through the lens of technology or blockchain. "Nobody's talking about use cases anymore," he explained. "It's now about sheltering wealth from a debt-fueled economic model."
Bitcoin's Outlook in Light of New Legislations
The upcoming week could significantly impact the cryptocurrency market, with expectations for new legislative initiatives from Congress regarding stablecoins and market oversight. A report from the Trump administration on crypto policy is also anticipated, which may include a proposal for a U.S. Bitcoin reserve.
Bitcoin, as a hedge asset in times of economic instability, could become a key element in investment strategies. Expected legislative changes and economic policies may also influence its further growth.
