- Bitcoin (BTC) price sits at $62K this Sunday.
- The digital currency may be poised to rally beyond its all-time high (ATH) due to the bleak economic outlook in the US.
- Bank of America (BofA) analysts claim US debt rises by $1 trillion every 100 days.
US Debt Surge
Recently, analysts from the Bank of America revealed yet another alarming assessment of the US economy’s direction. They found that the nation’s debt has been racking up an additional $1 trillion per 100 days, and the trend will likely continue.
“The US national debt is rising by $1 trillion every 100 days,” said the gloomy forecast of BofA Chief Strategist in an email to CNBC. “little wonder ‘debt debasement’ trades closing in on all-time highs, i.e. gold $2,077/oz, Bitcoin $67,734.”
The distressing evaluation of BofA adds fuel to the negative appraisal of other financial institutions. Back in November, Moody’s Investors Service dropped the ratings of the US government from stable to negative because of its inefficient fiscal policy.
“In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues,” commented Moody’s in a CNBC report. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”
As of January 4 this year, the data published by the US Department of Treasury shows that US debt has reached a point of no return at $34 trillion. That could be the case until an effective fiscal strategy is implemented.
Meanwhile, JPMorgan Chase CEO Jamie Dimon criticized the trajectory of the US government because of the growing expenditures of the White House and Congress that have resulted in mounting debts.
“It is a cliff, we see the cliff,” Dimon summed it all up. “It’s about 10 years out, we’re going 60 miles an hour.”
Bitcoin Price To The Moon
With all these in mind, the prospect of Bitcoin surpassing its all-time high may not be far behind. Right now, it’s only less than 10% away from its ATH of $68,789 achieved on November 10, 2021, at its current rate of $62K.
While there’s a predictable “sell the news” event looming moments before or after its halving, these developments coupled with the strong institutional demand for BTC due to the strong performances of spot Bitcoin exchange-traded funds (ETFs) could at least help cushion the prices. On the other hand, depending on the consensus at that point, these could also delay the inevitable sell-off and push Bitcoin prices further.