The post Bitcoin Surges Amid U.S. Economic Concerns: A Closer Look at the Cryptocurrency Market appeared first on Coinpedia Fintech News
Forbes’ senior contributor Billy Bambrough recently articulated the ever-surging Bitcoin value, surpassing the $37,000 mark, while raising red flags about the precarious state of the U.S. monetary system. Bambrough underscored a dire warning issued by the U.S. Federal Reserve, emphasizing an astonishing $33.7 trillion inflation risk.
This harrowing forecast amplifies the bullish prospects for leading crypto, prominently Bitcoin and XRP, as potential shields against economic instability. Despite the biggest legal triumph over the SEC, XRP still struggles to approach $1, Bitcoin is profiting from spot ETFs, and US debt has another pricing story.
Here’s the analyst’s inflation risk argument that benefits Bitcoin and XRP.
Decoding the “Inflection Point” For Bitcoin
Bambrough analyzed Bitcoin’s remarkable ascent above $37,000, significantly contributing to the broader crypto market’s upward momentum. However, he juxtaposed this surge with concerns from the U.S. financial landscape, hinting at potential threats to Bitcoin’s trajectory.
Simultaneously, he highlighted a contrasting narrative by legendary billionaire investor Ray Dalio. In contrast to Bitcoin’s prevailing anxieties, Dalio sounded the alarm about the colossal U.S. debt pile, now staggering at $33.7 trillion. The billionaire investor forewarns of an impending “inflection point,” noting Bitcoin as a potential haven amid imminent economic turbulence.
Reflexivity Research’s Will Clemente echoed Dalio’s bullish stance on Bitcoin. Clemente spotlighted Dalio’s advocacy for Bitcoin’s robust potential as a financial haven.
But the report digs more than just staggering U.S. national debt, surging beyond $33 trillion, fueled primarily by pandemic-induced spending and economic shutdowns. Clemente highlighted the ominous cycle of amassing more debt to service pre-existing obligations, reminiscent of individuals acquiring new credit cards to settle previous debts.
What’s Awaiting at “Debt Death Spiral”
Bambrough’s analysis underlines the anticipated trajectory of a projected “debt death spiral,” potentially leading to a collapse of the U.S. dollar. Consequently, this envisaged scenario could pave the way for a substantial cryptocurrency price surge akin to a modern-day gold rush. The cornerstone of this analysis lies in Bitcoin’s escalating recognition as a haven amidst impending economic challenges. It further ignites a comparable track for other digital assets like XRP, focusing their rise amid the backdrop of a depreciating dollar.
XRP And BTC Price Movements
Looking at the key trajectories, nothing is going great with XRP. The coin has dropped 5.11% from its high of $0.65098 to $0.509–$0.655. Led by large whale transactions and market sentiments, this decrease has highlighted Ripple (XRP) price dynamics. However, the bullish short-term sentiment is shown by the 10-day moving average at $0.651.
On the other hand, Bitcoin also fell but stabilized near $35,500. Bulls rallied past $36,500 and $37,000 barriers, reviving. After breaking the 50% Fibonacci retracement from the current negative move, the price rose to $37,200.