Bitcoin is a Safe Asset in Case of a US Debt Default – Survey

Godfrey Benjamin
May 15, 2023
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Global leading cryptocurrency Bitcoin (BTC) has been hinted to be a safe haven asset in the case of a United States debt default than many other top assets. Compared to the Japanese yen, the Swiss franc, or even the U.S dollars, BTC topped the list of assets that investors would be willing to buy if the U.S. hit the debt ceiling per a recent survey.

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The Survey Insights

This survey was carried out amidst suspicion of a looming debt default in the United States. It has become more obvious that the global market may be turned into a world of chaos and anguish. In the meantime, President Joe Biden is preparing to meet with Congress to discuss the situation. Also, investors are busy seeking protection and hiding places for their assets in the long run.

Markedly, the Bloomberg’s latest Markets Live Pulse survey took place between Monday May 8th to Friday May 12th with 637 respondents encompassing professional and retail investors. Of all ‘safe havens’ that were listed BTC, gold and treasuries were top on the list, with gold leading. More than 50% of professional investors claimed that they will buy gold in the event that the U.S. government cannot avoid a debt default.

Also in favor of gold, 45.7% retail investors indicated their intention. The next asset which investors showed interest in was the U.S. Treasury while BTC was the next. In the case of Bitcoin, more retail investors indicated interest compared to finance professionals making the token the choicest option amongst dollar, yen or even franc. 

While only about 7.8% professional investors chose BTC, more than 11% of retail investors will rather settle for the leading crypto. 

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U.S Faces Financial Crisis

This survey comes only about one month after US Treasury Secretary Janet Yellen declared that the inflation rate is still very high in the U.S even though there was moderation in the last two quarters. Her comment was followed by the release of the Consumer Price Index (CPI) data for the month of March by the U.S. Bureau of Labor Statistics.

She also warned at the beginning of this month that the U.S is at risk of a debt default. All of these seem to happening shortly after the crisis in the US banking system which involved Silvergate Bank, Silicon Valley Bank and Signature Bank.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.