Cointelegraph Team
Cointelegraph
Major cryptocurrency Bitcoin (BTC $27,422) could become a top three asset in the event of a theoretical debt default in the United States, according to a new survey.
As U.S. President Joe Biden prepares to meet with Congress on May 16 to discuss the U.S. debt ceiling, investors are seeking hedges to protect their savings in the event of default.
Gold, U.S. Treasurys and Bitcoin would be the top three assets should the U.S. fail to raise its debt ceiling and default on its debt, data from Bloomberg’s latest Markets Live Pulse survey suggests. The survey was conducted from May 8–12, involving a total of 637 respondents, including professional and retail investors.
More than 50% of finance professionals will buy gold if the U.S. government fails to avoid a debt default. U.S. Treasurys would be second, with Bitcoin the third most popular alternative for retail investors.
Data from Bloomberg Markets Live Pulse survey. Source: Bloomberg
This makes Bitcoin a more popular choice than the U.S. dollar, the Japanese yen or the Swiss franc. According to the survey’s data, about 8% of professional investor respondents and 11% of retail investor respondents said they are more willing to buy Bitcoin.
The poll comes as markets grow increasingly nervous about the U.S. debt ceiling. In early May, Treasury Secretary Janet Yellen warned that the U.S. risks a catastrophic default as soon as June 1 if the debt limit isn’t suspended or raised. President Biden subsequently declared that the “whole world” would be in trouble if the U.S. defaulted on its debt.
According to the Bloomberg survey, nearly 60% of respondents said the risks are bigger this time than in 2011. Forty-one percent of respondents also believe that a default directly threatens the U.S. dollar as the primary global reserve currency.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.