- Ray Dalio warned that the American debt could devalue wealth that is connected to the US dollar.
- Crypto leaders considered the tax chaos as a bullish catalyst for BTC.
Bitcoin [BTC] Bullish calls were extensive on Crypto Twitter, because the concern about the American debt made the headlines after the passage of the tax and expenditure account on 3 July.
According to estimatesThe bill is expected to add more than $ 3 trillion for the next 10 years.
But Ray Dalio, founder of Hedge Fund Bridgewater Associates, noted That the debt can get out of hand if the bill is implemented as it is.
He warned that within the next 10 years the debt for the average American family could become untenable.
The likely consequences? Higher taxes, reduced government spending or more money prints. This can holl the value of the US dollar and those who harm them to retain their wealth.
He explained,
“Printing and devaluing is not good for those who keep bonds like a wealth storage, and what is bad for bonds and American credit markets is bad for everyone.”
Source: Ray Dalio/X
The perfect storm for BTC?
This probably tax chaos and fall-out is precisely the reason why Bitcoin exists, claimed crypto leaders.
As a digital active of a fixed delivery, it becomes a relatively better value storage compared to traditional currencies such as the US dollar.
These currencies have an infinite offer and are pressed by central banks as desired. In short, BTC, gold and other scarce raw materials would be much in demand.
Respond to Dalio’s warning, Bitwise Cio Matt Hougan insisted Users to ‘buy Bitcoin’.
Raoul Pal of Real Vision also repeated Hougan’s attitude, add That only technology and crypto are better hedges in such a devaluations scenario.
“Debasement hedges in secular bull markets – there are only two that considerably surpass: tech and crypto.”
Although Dalio has public allowed To possess some BTC, he is more inclined to gold.
He said it is easier to follow golden price movements, mainly because of conflicts. But he found it difficult to do the same at the BTC price and concluded that it still acts as a speculative interest.
However, BTC is a digital gold for BlackRock’s Larry Fink. In fact, he warned In April it can easily replace the US dollar if the reserve currency of the world is not managed.
Yet Treasury is Secretary Scott Bessent triggered The debt issues are linked to the expenditure account.
“We grow the GDP faster than debts, and that trend will continue due to the rest of the President’s term of office.”
Meanwhile, coinbase -analysts warned That the ‘Big Beautiful Bill’ has an increase in debt limit of $ 5 trillion.
As a result, the American treasury could top up the most important cash account of TGA (general account of the treasury) (borrow money) and liquidity, dragging risk activa, including BTC.
“This TGA supplement could in the short term deduce the liquidity from the wider market, making a remarkable downward risk of all risk assets.”