Bitcoin
‘Worst Ever’ — Bitcoin Suddenly Hurts Towards $1.9 Trillion Crash After Massive Price Drop
Bitcoin has stabilized after its sudden price drop this week, although “extreme fear” is threatening to cause more problems.
Bitcoin price has fallen to levels not seen since February Bitcoin exchange collapses, Mt. Gox begins moving what could be a giant wave of bitcoins.
Now, as Federal Reserve Chairman Jerome Powell warned of a “critical period,” Bitcoin’s price is poised for the US budget deficit to rise by 27% next year to $1.9 trillion — something some believe will likely support Bitcoin’s price.
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US Treasury Secretary Janet Yellen has previously warned about the US’s growing $34 trillion debt… [+] stack that some believe could catapult the price of bitcoin to $1 million in the next 18 months.
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“Until the government stops spending like drunken sailors… bitcoin as a mainstream asset makes all the sense in the world to me,” said Michael Novogratz, chief executive of cryptocurrency-focused financial services firm Galaxy Digital. counted CNBC, adding that both former President Donald Trump and President Joe Biden “were the two worst presidents in terms of increasing the debt in the history of our country.”
Biden has faced increasing calls for him to step aside and make way for a new Democratic Party candidate to run against former President and likely Republican nominee Donald Trump this week.
Biden’s chances of dropping out of this year’s White House race have suddenly shot up in recent days to 62% on cryptocurrency-based prediction platform Polymarket.
Last month, Treasury Secretary Janet Yellen issued a stark warning about the US’s $34 trillion debt spiral which some believe could catapult the price of bitcoin to $1 million in the next 18 months.
Interest payments on US debt are expected to reach $870 billion this year, according to a recent report analysis by the Congressional Budget Office after rising inflation prompted the Federal Reserve to raise interest rates at an unprecedented pace following massive Covid-era spending and money printing.
The Congressional Budget Office added this month that the U.S. budget deficit is expected to rise 27% next year to $1.9 trillion.
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The price of bitcoin has fallen from its recent all-time high of over $70,000 per bitcoin.
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Earlier this year, analysts at Bank of America warned that U.S. debt is poised to increase by $1 trillion every 100 days.potentially fueling a rise in the price of bitcoin.
“The U.S. national debt is increasing by $1 trillion every 100 days,” Michael Hartnett, chief strategist at Bank of America, wrote in a note to clients. visa by CNBC, adding that “it’s no wonder that ‘debt write-down’ talks are approaching all-time highs.”
Hartnett predicted that the newly created bitcoin exchange-traded funds (ETFs) that have taken Wall Street by storm over the past month are headed for a “bigger year,” in part because of the collapse of the U.S. dollar.