Bitcoin is being established as a key protective asset amidst concerns over a financial crisis in the US. Analysts note that its rise is supported by macroeconomic factors.
Bitcoin as a Macro Asset
Analyst Markus Thielen from 10x Research states that Bitcoin has become a significant macro asset and a hedge against US fiscal irresponsibility. He mentioned, 'No one is talking about blockchain use cases or Bitcoin’s technological promise anymore.'
Escalating US Budget Deficit
According to Thielen's report, President Donald Trump's 'One Big Beautiful Bill Act' raised the debt ceiling by $5 trillion, which could lead to a $7 trillion deficit. This scenario creates a macroeconomic environment in which Bitcoin could become the 'ultimate beneficiary.'
Future Catalysts for Bitcoin
Analysts highlight several significant events like 'Crypto Week,' when a number of legislative bills concerning cryptocurrency markets will be discussed. The Federal Reserve is also expected to meet on July 30 to discuss potential interest rate cuts, which may affect Bitcoin's price.
The situation surrounding Bitcoin illustrates how digital assets are becoming increasingly significant in institutional portfolios. In light of the rapid deterioration of the economic situation in the US, Bitcoin is emerging as a potential protective asset.
