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Crypto Faces Ripple Effects From Record US Debt in 2025
The US government is expected to auction debt worth more than $31 trillion in 2025, putting immense pressure on the market and potentially shifting institutional sentiment in favor of crypto assets. The unprecedented surge in debt issuance could lead to a sharp rise in interest rates, further exacerbating the situation.
In an unusual scenario where the government runs out of options and resorts to printing money (debt monetization), Bitcoin may once again take center stage as a hedge against fiscal instability and eroding confidence in fiat currencies. This would likely attract not only retail investors but also large institutions that have remained conservative up until now.
Adam Posen, an expert from the Peterson Institute, has warned of a potential economic recession with a 65% probability. Such a scenario could lead to significant market volatility and heightened interest in digital assets as investors seek alternative investment options.
It is essential for readers to conduct their own research and consult financial advisors before making any investment decisions based on this information, which is intended solely for informational purposes.
The article does not constitute an offer to buy or sell securities, futures contracts, options, CFDs, derivatives, or cryptocurrencies.
Source: https://www.crypto-news-flash.com/crypto-faces-ripple-effects-from-record-us-debt-in-2025/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-faces-ripple-effects-from-record-us-debt-in-2025
