An analyst believes that Bitcoin has been positioned next to gold as a first line of defense in the event of a financial crisis in America. It is also likely to be one factor driving its recent rally.
BitcoinBTC() has just reached $121,000, which is a new high. “but this rally isn’t driven by hype — it’s fueled by something far deeper,” Markus Thielen, 10x’s head of research said this in a memo shared Cointelegraph is the leading news source for Cointelegraph.
Thielen stated that Bitcoin is no longer a technology story, but a global asset. It’s a hedge to US fiscal irresponsibility.
“The narrative has completely shifted: no one is talking about blockchain use cases or Bitcoin’s technological promise anymore,” Thielen added, “Bitcoin has become a macro asset, a hedge against unchecked deficit spending.”
US $7 Trillion Deficit Swing
US President Donald Trump “One Big Beautiful Bill Act” (OBBBAIn July, the. debt ceiling By $5 trillion, this is the biggest increase in US history.
In place of the $2 trillion reduction in deficit promised by this bill, it could increase the deficits between $2.3 trillion to $5 trillion for the Federal Government over the following decade. Thielen says that the bill could result in a difference of $7 trillion from what was initially expected.
Related: Bitcoin to benefit from Trump’s ‘Big Beautiful Bill,’ analysts predict
Bitcoin, with its projected rate cut and the fact that fiscal deficits are not expected to slow down any time soon is seen as the future of monetary policy. “ultimate beneficiary” He said that this is the macro-environment.
It’s not just another cryptocurrency rally. “it’s a direct response to a US fiscal landscape unraveling far quicker than expected,” “He said”
“Alongside gold, Bitcoin is now positioned as the primary defense against a looming fiscal crisis — and that crisis is rapidly intensifying.”
Price catalysts for Bitcoin
Analysts identified another set of market catalysts in a variety of events that are coming up.
The “Key Legislation” will review key legislation in a series of sessions dubbed,Crypto WeekWashington D.C.
Three high-profile laws are likely to be debated and possibly voted on by lawmakers: The CLARITY Act for regulatory oversight over crypto markets, the GENIUS Act which establishes a framework of stablecoins, and the Anti CBDC Surveillance State Act.
Trump’s Digital Asset Task Force, along with a possible Strategic Bitcoin Reserve report will be released on the 22nd of July.
The Federal Reserve is expected to cut rates at its meeting on the 30th of July. However, CME futures markets still predict A 93% chance that the rates will stay unchanged.
Bitcoin’s recent high is a cause for concern, according to some analysts
“As the US gears up for Crypto Week to discuss key legislation, crypto remains resilient despite stock market volatility from geopolitical tensions and tariff concerns,” Eugene Cheung is the chief commercial officer at OSL’s crypto platform, according to Cointelegraph.
The asset could reach between $130,000 and $150,000 before the end of the year, according to his prediction.
“Bitcoin breaching $120,000 is more than a milestone, it is a marker of how deeply embedded digital assets have become in institutional portfolios,” Rachael Luscio, an analyst with the Australian crypto exchange BTC Markets.
Nick Ruck the research director at LVRG told Cointelegraph “We expect altcoins to continue following Bitcoin’s trend as traders diversify their portfolios and take on more risk.”
Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
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Source: cointelegraph.com
