Bank of America strategist: U.S. government debt increasing by $1 trillion every 100 days may be one of the reasons for the rise in gold and Bitcoin

Bank of America strategists have recently stated that the US government's debt increases by $1 trillion every 100 days, which helps explain why assets such as gold and bitcoin are approaching historic highs. Strategists led by Michael Hartnett said that the pace of debt expansion is accelerating. They estimate that it will only take 95 days for the debt to rise from $34 trillion to $35 trillion. Bank of America said that for the market, the consequence is that trading related to "bond depreciation" has proven attractive as gold and bitcoin have recently risen.

United States

Comments

All Comments

Recommended for you

CointimeSG ·

‘BITSANITY’ — Records broken with $70B in volume for Bitcoin stocks, ETFs

MicroStrategy saw more trading volumes than the US spot Bitcoin ETFs combined as its shares tanked over 25% on Nov. 21.
CointimeSG ·

MicroStrategy completes its $3 billion debt offering to buy more bitcoin

The “bitcoin treasury company” has completed a $3 billion convertible senior notes offering to buy more bitcoins, according to an announcement on Thursday.
CointimeSG ·

This Wall Street Bitcoin Miner Buys 11,500 New Rigs, While BTC Approaches $100,000

HIVE Digital orders 5,000 new Bitcoin miners from Canaan, marking its second major purchase this month.
CointimeSG ·

Here’s what happened in crypto today

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
CointimeSG ·

US Bitcoin ETF assets break $100 billion

Bitcoin exchange-traded funds now collectively manage approximately $104 billion, and are on track to surpass gold ETFs in net assets.
CointimeSG ·

Solana Thesis Part II: The Data-Driven Case for SOL

In Q4’23 Syncracy released a public thesis on Solana. In it we argued that SOL was severely mispriced at 13% of Ethereum’s valuation given its industry-leading scalability, unique integrated design, and growing developer traction. At the time, the case for Solana was mostly qualitative as the data confirming that thesis was still emerging. The argument essentially boiled down to Solana offering a rare opportunity to own a foundational project, at a distressed valuation, that unlocked new possibilities at a scale comparable to Bitcoin and Ethereum. In other words, while the Solana story was undeniably exciting, it was driven more by potential, than momentum.
CointimeSG ·

Lazybridging: the Celestia endgame to solve fragmentation and stream assets from anywhere

Earlier this year, the Celestia roadmap was published. An important part of the roadmap is adding ZK verification natively to the Celestia base layer, so that rollups can directly bridge assets via Celestia. In this post, we explore how adding ZK to the base layer unlocks Lazybridging - the Celestia endgame for a frictionless modular user experience.
CointimeSG ·

Microstrategy will be reflexive on the way up and on the way down

The Terra/LUNA of the current cycle
How Crypto Could Help Open-Source AI Reach Its Potential

The impact of artificial intelligence (AI) is being felt across various sectors, including drug discovery, workforce productivity, and personalized content on streaming platforms like Netflix. Experts predict that the AI industry will grow by 40% annually and reach a trillion-dollar market by 2030, potentially transforming industries on an unprecedented scale. The use of cryptocurrency could play a crucial role in enabling open-source AI to overcome current limitations and reach its full potential.
ECB board member Patsalides warns Trump's tariff plan could lead to stagflation in Europe

Christodoulos Patsalides, a member of the European Central Bank's board, warns that if US President-elect Donald Trump follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. "Trade tensions are escalating," said the Cyprus Central Bank governor on Thursday in Nicosia. "If trade restrictions become a reality, the outcome could be inflation, economic recession, or worse, stagflation." He said that although there is room for further lowering of borrowing costs, it should be done "at a stable pace and magnitude."