Bitcoin The Preferred Asset Over the Dollar in the Event of a US Default

A recent survey has revealed that retail investors are inclined to choose Bitcoin over the dollar in the face of a potential default by the United States government. Experts have warned that a US default could occur as early as June 1, adding urgency to the investors’ decision-making process. In fact, Standard Chartered analyst Geoff Kendrick previously predicted a staggering 70% surge in the price of Bitcoin in the event of such a default. This article examines the survey findings and explores the reasons behind the increasing preference for Bitcoin as a safe haven asset.

Survey Highlights Bitcoin’s Appeal

According to a report by Bloomberg’s Markets Live Pulse, while gold and Treasury bonds ranked higher as trusted safe haven assets in the event of a US default, Bitcoin emerged as the third most favored asset, surpassing the US dollar itself. The survey, conducted among investors, aimed to gauge their investment preferences in the event of a debt ceiling crisis.

Gold Remains Top Pick

The survey revealed that among professional investors, 51.7% favored gold as the primary choice in a debt ceiling crisis. Similarly, 45.7% of retail investors also preferred precious metals. Furthermore, a significant percentage of investors, 14% of professionals and 15.1% of retail investors showed confidence in Treasury bonds as a safe haven asset.

Bitcoin Gains Prominence

Surprisingly, Bitcoin secured the third position in investors’ preferences. Approximately 7.8% of professional investors and 11.3% of retail investors indicated their inclination to invest in Bitcoin rather than the dollar. This highlights the growing recognition of Bitcoin as a viable alternative during financial uncertainty. Furthermore, around 7.8% of professional investors and 10.2% of retail investors affirmed their intention to maintain their trust in the dollar.

Bitcoin Price Speculations Amid US Default Concerns

With the impending threat of a US default, the price of Bitcoin has become a subject of speculation. If lawmakers fail to reach an agreement to raise the $31.4 trillion debt limit, the default could occur as early as June 1, 2023. While stock investors are hopeful of a potential resolution, reports suggest that consensus has yet to be achieved, resulting in market uncertainty.

Despite this uncertainty, Bitcoin has remained relatively stable, hovering above $27,400. Analysts anticipate the possibility of a decline to support levels observed in the previous week or even lower. However, given Bitcoin’s resilience in the face of banking crises, a default scenario could provide fresh impetus for the cryptocurrency to experience significant gains.

Standard Chartered Analyst’s Bold Prediction

Standard Chartered analyst Geoff Kendrick recently made a bold prediction regarding the price of Bitcoin in case of a US default. Kendrick, the head of FX research at Standard Chartered, suggested that Bitcoin could witness a remarkable 70% surge. Although he acknowledged the potential for an initial drop following the default, he believes that digital gold could reach new heights.

Conclusion

Investors are carefully assessing their investment options as the possibility of a US default looms. The survey results indicate a growing preference for Bitcoin as a safe haven asset, with retail investors and professionals alike considering it a viable alternative to the dollar. While gold and Treasury bonds remain popular choices, Bitcoin’s prominence is noteworthy, thanks to its resilience and potential for substantial price gains. As the future unfolds, it will be fascinating to observe how investors navigate these uncertain times and embrace the ever-evolving landscape of digital assets.

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Konstantinos77

Crypto Tech News 24

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