Amidst the looming global financial crisis and the nation’s mounting debt, the US Department of Treasury recently increased the debt of the country by an amount greater than half of the whole market value of Bitcoin (BTC) in a single day.
The US national debt increased by $275 billion in a single day, hitting a record-high of $33.442 trillion. As per the findings shared by Pixematic and JAN3 CEO Samson Mow in an X post on October 4. At the time of publication, the total market capitalization of Bitcoin was $536.69 billion.
$275 B US Debt Surge: Will Crypto Investments Soar?,$275 B US Debt Surge: Will Crypto Investments Soar
In fact, as Mow said, “there are still people that are unsure if $27k is a good price to buy,” referring to the value of the most valuable cryptocurrency at the time of publication, “and yet there are still people that are unsure of this enormous US debt amount.”
Coins Typically Increase During Uncertain Times
Cryptocurrencies, like Ethereum and Bitcoin, tend to become more significant during uncertain times. One is not limited to using a fiat currency that is weighed down by mounting public debt. This was evident when the 2008 financial crisis that the banks caused sparked interest in cryptocurrencies.
As BTC-USD surged, gold dropped from the $1,900–$2,072 range to $1,823. An increasing number of options are available inside the economic system in place of conventional money and assets.
Is Rate-Hike Enough to Fix the Issue?
As it struggles to rein in out-of-control inflation, the Federal Reserve has started a frenzied sequence of rate rises, raising rates to levels not seen since before the global financial crisis of 2008.
Because of this, the federal government is having to borrow more money in order to pay for the increased interest payments associated with the national debt. Projections indicate that these costs will go from just under $400 billion in 2018 to almost $1.2 trillion in 2032.
Recently, proponent of bitcoin Max Keiser said that “raising rates won’t stop inflation, it’ll stoke higher inflation.”
“The vicious cycle never stops. We are in a death debt cycle,” he declared, adding that he believes “anything against Bitcoin will fall to zero.”
Bitcoin Price Changes
The most recent data, collected on October 4, shows that Bitcoin was trading at $27,557 at the time of writing. This is a 0.17% decrease on the day, although it is still up 5% from the previous week and 6.1% from its monthly trend.
$275 B US Debt Surge: Will Crypto Investments Soar?,$275 B US Debt Surge: Will Crypto Investments Soar? $275 B US Debt Surge: Will Crypto Investments Soar?