Market

Bitcoin Is Among The Top 3 Preferred Assets As US Default Risks Rise

Key Points:

  • If the US hits the gold debt ceiling, US Treasuries and Bitcoin will be investors’ top three preferred assets.
  • US President Joe Biden and Republicans in Congress are at an impasse over raising the debt ceiling to $31.4 trillion.
According to Bloomberg’s latest Markets Live Pulse survey, if the US hits the debt ceiling, gold, US Treasuries, and Bitcoin will be the top three preferred assets for investors, ahead of the USD, Japanese yen, Swiss franc, and other assets. The time frame of the survey is from May 8 to May 12, with 637 respondents worldwide.

According to the survey results, for the top preferred asset, gold, 51.7% of professional investors and 45.7% of retail investors are willing to buy. 14% of professional and 15.1% of retail investors are more inclined to buy government bonds. And 7.8% of professional and 11.3% of retail investors are more willing to accept Bitcoin than to opt for gold and Treasuries.

The precious metal has by far remained the top choice for those seeking protection if Washington’s debt ceiling chicken game ends in a crash. More than half of financial professionals said they would buy gold if the US government did not honor its obligations.

Hedging with gold is not cheap as the metal has enjoyed excellent growth year-to-date. Driven at first by growing demand from Chinese luxury buyers, then by a crisis in the banking sector and the threat of a US default, it is currently hovering at high levels. The all-time high is 2,075.47 USD/ounce.

Bitcoin’s value stems from many attributes. After all, both cryptocurrencies and fiat currencies have value based on trust. As long as society believes in the fiat money system, money will continue to have value. Bitcoin is similar: the coin has value because users believe it has value.

The reason investors prefer Bitcoin over popular assets like the dollar is that, unlike fiat money, Bitcoin has no central bank. Its decentralized structure allows the creation of a unique financial system. Blockchain technology brings many benefits regarding security, utility, and other benefits. This technology will also completely change the way value is transferred globally. Bitcoin can also act as a store of value similar to gold.

Over the past few days, major political and financial figures have repeatedly warned of what could happen if the debt ceiling deadlock is not resolved. As the No. 1 power in the world, the failure of the US does not stop at the domestic economic recession, but it is also a global disaster to face.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News

Victor

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

27 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

57 minutes ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

2 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

3 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

5 hours ago

This website uses cookies.