According to a new study, Bitcoin would be a more popular safe haven than the US currency, Japanese yen, or Swiss franc. Furthermore, it is seen that the major cryptocurrency Bitcoin may become a top three asset in the case of a hypothetical debt default in the United States.
Investors are looking for hedges to safeguard their money as US President Joe Biden prepares to meet with Congress on May 16 to debate the US debt ceiling. According to Bloomberg’s latest Markets Live Pulse survey, gold, US Treasury, and Bitcoin would be the top three assets if the US fails to increase its debt ceiling and defaults on its obligations. The study was conducted from May 8 to 12, and 637 people participated, including both professional and retail investors.
If the US government fails to prevent a debt default, more than half of finance professionals will buy gold. US Treasury bonds would come in second, with Bitcoin ranking third among individual investors. As a result, Bitcoin is more popular than the US dollar, Japanese yen, or Swiss franc. According to the study results, around 8% of professional investor respondents and 11% of retail investor respondents are more ready to purchase Bitcoin.
The survey comes as markets become increasingly concerned about the United States debt cap. Treasury Secretary Janet Yellen warned in early May that the United States faces a catastrophic default as soon as June 1 if the debt ceiling is not postponed or lifted. President Biden later said that if the United States defaulted on its debt, the “whole world” would be in peril.
According to the Bloomberg poll, roughly 60% of respondents believe the dangers are worse now than in 2011. A default, according to 41% of respondents, directly threatens the US dollar as the key global reserve currency.