The Bank of International Settlements (BIS) has warned heavily indebted nations of the risk of a sudden loss of market confidence, cautioning against premature easing of monetary policy. The BIS did not single out any nation in particular but cautioned advanced economies from running fiscal deficits larger than 1% of the gross domestic product (GDP) this year. The warning comes as public debt as a ratio to GDP has soared worldwide since 2020, a direct result of the coronavirus pandemic that compelled governments to increase spending significantly while facing dwindling revenues. The consensus in the crypto market is that mounting debt concerns will force the Fed and other central banks to cut rates, spurring more investor inflows into alternative assets like bitcoin.