Bitcoin’s Rising Status as Safe Haven Asset Amid US Debt Ceiling Crisis

Intricate, dystopian art style, dimly lit setting, textured brushstrokes, tense mood: US Presidents and Congress members in a dark, spacious room with high ceilings, discussing the looming debt crisis; on the table, gold bars, treasury bonds, and a holographic Bitcoin symbol; distressed investors watch intently from a distance, symbolic of their uncertainty.

As the United States faces the possibility of a debt default, a recent survey suggests that global leading cryptocurrency Bitcoin (BTC) could be considered a safe haven asset, surpassing traditional options such as the Japanese yen, Swiss franc, or even the U.S. dollar. The survey was conducted amidst concerns over the U.S. debt ceiling, prompting President Joe Biden to meet with Congress to address the issue. Investors are also seeking refuge for their assets in preparation for potential market upheaval.

The Bloomberg Markets Live Pulse survey, which took place between May 8th and May 12th, included 637 professional and retail investors. Among the selected ‘safe havens,’ BTC, gold, and treasuries were at the top of the list, with gold gaining the most interest. Over 50% of professional investors said they would purchase gold if the U.S. government fails to avoid a debt default, while 45.7% of retail investors expressed similar intentions.

The next asset garnering investor interest was U.S. Treasury bonds, followed by Bitcoin. Interestingly, a higher percentage of retail investors favored Bitcoin over finance professionals, indicating a preference for the leading cryptocurrency among those looking to preserve their wealth despite potential financial turmoil. While only about 7.8% of professional investors chose BTC, more than 11% of retail investors opted for the digital currency over the dollar, yen, or franc.

This survey comes after U.S. Treasury Secretary Janet Yellen warned about the country’s high inflation rate, which remained elevated despite moderation in recent quarters. Additionally, Yellen highlighted the risk of a debt default earlier this month. These concerns arose following a crisis within the U.S. banking system involving Silvergate Bank, Silicon Valley Bank, and Signature Bank.

It is important to note that the survey’s results reflect the personal opinions of the respondents and are subject to market conditions. Before investing in cryptocurrencies, thorough market research is recommended to minimize personal financial loss. The author and publication do not hold any responsibility for any damages incurred.

While some may view Bitcoin as a viable safe haven in times of economic uncertainty, others argue that its volatility and lack of widespread adoption make it a risky choice. The ongoing debate between the advantages and drawbacks of traditional safe havens versus cryptocurrencies like Bitcoin will likely continue as the global financial landscape evolves. However, this survey’s findings highlight a growing interest in digital currencies as an alternative means of asset protection, showcasing their potential as a pivotal component of the financial future.

Source: Coingape

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