This is evidenced by the results of a survey of professional and retail investors

​Bitcoin is one of the top three protective assets in case of default in the US according to Bloomberg

15.05.2023 - 07:20

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2 min

What’s new? Investors surveyed by Bloomberg listed bitcoin as one of the top three assets to protect against default in the United States after gold and Treasury bonds. So, if the US government fails to meet its financial obligations, 7,8% of professional and 11,3% of retail investors will buy the first cryptocurrency. In the case of the precious metal, the figure is 51,7% and 45,7%, respectively.

Material on the Bloomberg website

What else is known? The survey, conducted from May 8 to 12, surveyed 637 respondents. The US dollar, like bitcoin, was singled out by 7,8% of professional investors as a safety net, but it is less popular among retail investors (10,2% vs. 11,3%). Meanwhile, cryptocurrency has overtaken traditional assets such as the Japanese yen and the Swiss franc in both groups.

Possible default in the US. President Joe Biden and Republicans continue their confrontation in Congress on the subject of raising the national debt ceiling from the current $31,4 trillion. The Republicans have agreed to raise the ceiling only if the government substantially cuts spending.

If Congress does not raise the federal debt ceiling, the default could come this summer. According to US Treasury Secretary Janet Yellen, this event would be a disaster for the economy and cause massive unemployment, payment disruptions, and a permanent rise in interest rates.

Earlier, an analyst at Standard Chartered called a possible default in the US a trigger for a $20 000 rise in BTC. According to Geoff Kendrick, the asset is a safe haven in times of economic instability.

In addition, Circle adjusted its USDC stablecoin reserves in favor of short-term US bonds. This move was taken to mitigate risks in the event of a default. The company does not want to bear the risks because of “a potential breach of the ability of the US government to pay its debts.”

As of May 15, 06:40 UTC, BTC to USDT is trading at $27 521 on Binance, having gained 2,29% in 24 hours. Bitcoin’s market share is 46,5%, capitalization is $533,4 billion

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