Bitcoin Outshines Traditional Currencies as Preferred Safe Haven

  • 7.8% of professional and 11.3% of retail investors prefer Bitcoin over other safe-haven assets.
  • Pres. Biden warns of a financial crisis possibly worse than the 2011 debt ceiling crisis.

A survey by Bloomberg’s MLIV Pulse highlighted a significant change in investor sentiment amid a looming United States debt default risk. Bitcoin rises above traditional safe haven currencies such as the US dollar, yen, and Swiss franc in response.

The survey, conducted from May 8 to 12, 2023, revealed that investors, both professional and retail, are increasingly considering Bitcoin, gold, and government bonds as a hedge against the current financial instability.

Although gold remains the first choice for most, attracting 51.7% of professionals and 45.7% of retail investors, a notable 7.8% of professionals and 11.3% of retail investors have shown a preference for Bitcoin. Government bonds also have a fair share of investor interest, with 14% of professional and 15.1% of retail investors choosing them over traditional currencies.

Jason Bloom, the head of fixed income, alternatives, and ETF strategies at Invesco, emphasized that the current debt crisis risk surpasses previous incidents, driven by a highly polarized electorate and Congress.

President Joe Biden, JPMorgan Chase & Co. CEO Jamie Dimon, and the International Monetary Fund also echoed concerns about the potentially catastrophic impact of the US debt crisis on the global financial system. They warned of a financial crisis that could be more severe than the 2011 debt ceiling crisis, the worst debt-limit crisis in recent history.

At the time of writing, Bitcoin was priced at $27,408, up 2% over the past 24 hours. Prior to this development, Tether, a prominent stablecoin issuer, revealed that it purchased approximately 52,670 Bitcoins in Q1, 2023. Samson Mow, CEO of JAN3, speculated that if Tether continues this trend, it could accumulate nearly 200,000 coins per year, potentially surpassing MicroStrategy in Bitcoin holdings.

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