Analysts suggest that Bitcoin could act as a hedge against global debt risks and record-high debt-GDP levels. Bitwise analysts claim that Bitcoin is an insurance for major global economies against increasing debt. They predict that Bitcoin could surge above $200,000 in value due to its role as insurance against rising debts and default risk. The analysts note that the financial situations of France and the UK, as well as the US reaching its debt limit, are concerning for bond investors. The analysts also state that Bitcoin's fair value is correlated with countries' default probabilities, and if G20 sovereign bonds face a 6.2% default probability, Bitcoin's fair value could be $219,000. While gold also serves as a hedge against sovereign risks, Bitcoin is seen as a better option due to its higher scarcity and independence from centralized institutions. However, Bitcoin's volatility poses risks to investors seeking stability during times of crisis.



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