As the US faces the potentially catastrophic debt ceiling crisis, investors are increasingly looking for safe havens to store their money instead of traditional investments like US dollar, the Japanese Yen, and the Swiss franc. This preference for safe havens can be seen in the ultra-popular Bloomberg MLIV Pulse survey that conducted between May 8-12 where Bitcoin was favoured by investors over both gold and treasuries.

Bitcoin has become increasingly popular as a refuge, with 7.8% of professional investors and 11.3% of retail investors preferring it as an investment option over traditional safe havens. This demand is expected to surge, with 51.7% of professional and 45.7% of retail investors willing to buy gold and 14% of professional and 15.1% of retail investors ready to invest in government bonds. Furthermore, experts expect the debt default risk to be greater than in 2011, seriously denting the US dollar's status as a primary global reserve currency.

After a few days of decline, Bitcoin's price is slowly rising and is currently trading at around $27,368. There is a belief that the US Federal Reserve will soon lower its rates and this could lead to Bitcoin reaching $35,000 in the near future. Indeed, the CoinGape Media earlier reported that per the Bloomberg report, this scenario looks quite likely.

While it may look like Bitcoin's price is being buoyed by the US debt crisis, its position as a safe haven beyond fiat currencies has been growing in strength for a few years now. As the US economy continues to weaken and investors flock towards gold and treasuries, we can expect Bitcoin to further emerge as an attractive global investment option.



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