US Default Could Send Bitcoin and Stablecoins Soaring

May 21, 2023 Nitish shaw Cryptocurrency News, Finance 0

Colorado Begins Distributing PTC Rebate Checks

Experts are divided on what will happen to Bitcoin and stablecoins if the United States defaults on its debt. Some believe that Bitcoin could see a surge in demand as investors seek a safe haven asset, while others believe that the turmoil in the financial markets could lead to a sell-off in all assets, including Bitcoin.

Stablecoins are a type of cryptocurrency that is designed to maintain a stable value, typically by being backed by a reserve asset such as the U.S. dollar. If the U.S. defaults on its debt, it could lead to a loss of confidence in the dollar, which could in turn lead to a decline in the value of stablecoins.

However, it is important to note that Bitcoin and stablecoins are still relatively new assets, and there is no guarantee of how they will react in the event of a U.S. debt default. Ultimately, the impact on these assets will depend on a number of factors, including the severity of the default and the overall state of the financial markets.

Here are some of the predictions made by experts:

  • Geoff Kendrick, head of digital assets research at Standard Chartered, believes that a U.S. default could cause Bitcoin to jump by about $20,000, an increase of nearly 70% from current levels.
  • Jeremy Allaire, CEO of Circle, the issuer of USD Coin, says that his company has adjusted the mix of reserves backing its USD Coin to favor short-dated U.S. Treasuries so it can avoid getting caught up in a potential U.S. debt default.
  • Tether Holdings, the operator of the largest stablecoin, Tether, has reported that it increased its holdings of U.S. Treasuries in March.
See Also:  Creating Viral Content: Alex Lim’s TikTok Strategies for Crypto Creators

It is important to note that these are just predictions, and the actual impact of a U.S. debt default on Bitcoin and stablecoins is impossible to say for sure.

Related Stories:

Short-Squeeze Sends Bitcoin Soaring, Bearish Bets Burn $100 MillionShort-Squeeze Sends Bitcoin Soaring, Bearish Bets Burn $100 Million Bitcoin priceUS Representative Introduces Bill To Establish Government-backed Insurance For Stablecoins $830 billion loss faced by investors due to Crypto crashBitcoin Surges 4% Today, but These 3 Bitcoin-Adjacent Stocks Soared Much Higher Bitcoin Dominance: the pinnacle of crypto supremacyWhat are the Pros and Cons of Bitcoin? Tips for Investing in Bitcoin The SEC’s green light for Bitcoin ETFGrayscale Bitcoin Trust Experiences $579 Million Outflow Amid Bitcoin ETF Agreement Sonali Raut Sizzles in Red Bikini, Sends Heartbeats Soaring: Watch the Steamy Video Now!Sonali Raut Sizzles in Red Bikini, Sends Heartbeats Soaring: Watch the Steamy Video Now! NASA to launch drought tracking satelliteNASA Confirms Launch Date for Its Massive Moon Rocket $830 billion loss faced by investors due to Crypto crashFidelity Macro Expert Says Bitcoin (BTC) and Ethereum (ETH) Now ‘Impenetrable’ Markets
Avatar photo
About Nitish shaw 237 Articles
An aspiring novelist and a random blogger, Nitish is also a porky-mouthed banter specialist when it comes to football (soccer), films, TV Series, History and socio-economic issues. He travels, indulges in music and plays outdoor sports to get his creative juices flowing. “There’s the scarlet thread of murder running through the colorless skein of life, and our duty is to unravel it, and isolate it, and expose every inch of it.”- Quote this, and you will be his favorite person for at least as long as the two of you can hold up the conversation.

Be the first to comment

Leave a Reply

Your email address will not be published.