U.S. debt expansion drives investors to shift to Bitcoin and gold to hedge against U.S. dollar depreciation risk
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U.S. debt expansion drives investors to shift to Bitcoin and gold to hedge against U.S. dollar depreciation risk
According to CoinDesk, U.S. federal debt has risen to a historic high of approximately $39.7 trillion. The continued growth of debt is reinforcing market focus on the "currency debasement trade," which involves buying limited-supply assets such as gold and Bitcoin to hedge against the risk of declining fiat currency value.
Navigating Web3 tides with focused insightsTechFlow News, July 27, according to CoinDesk, the U.S. federal debt has risen to a record high of approximately $39.7 trillion. The continued growth of debt is reinforcing market attention on the "currency devaluation trade," which involves buying limited-supply assets such as gold and Bitcoin to hedge against the risk of fiat currency value decline.
The report noted that against the backdrop of high debt, U.S. fiscal policy space is constrained. If an economic recession occurs subsequently, market demand for assets outside the traditional financial system, such as Bitcoin, may further increase.
Meanwhile, Bitcoin has currently returned above $65,000, and Ether is outperforming Bitcoin, indicating that its relative momentum is strengthening.
