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

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.

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. 

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.