Bitcoin Positioned as Shield Against US Fiscal Crisis, Analyst Says

Bitcoin’s record-breaking rally to $122,000 on Monday is being fueled by deep macroeconomic shifts rather than hype, according to 10x head of research Markus Thielen. In a note shared this week, Thielen stated that Bitcoin has evolved from a tech narrative into a macroeconomic asset, serving as a hedge against growing US fiscal crisis. “The narrative has completely shifted: no one is talking about blockchain use cases or Bitcoin’s technological promise anymore,” Thielen explained. “Bitcoin has become a macro asset, a hedge against unchecked deficit spending.” He argued that with the US continuing its deficit spending trajectory and an environment of potentially lower interest rates, Bitcoin is emerging as the “ultimate beneficiary” of this unraveling fiscal backdrop. US Fiscal Crisis Fuels Bitcoin’s Safe-Haven Status The analysis follows the passage of President Donald Trump’s “One Big Beautiful Bill Act” (OBBBA) in July, which raised the US debt ceiling by $5 trillion, marking the largest single increase in the nation’s history. While the bill initially aimed to cut deficits by $2 trillion, projections now indicate it could instead add between $2.3 trillion and $5 trillion to federal deficits over the next decade. Thielen highlighted this as a potential $7 trillion swing from initial expectations. “This isn’t just another crypto rally; it’s a direct response to a US fiscal landscape unraveling far quicker than expected,” Thielen said, adding that Bitcoin, alongside gold, is now viewed as a primary defense against a looming fiscal crisis in the United States. The macro environment, characterized by persistent deficit spending and a potential pivot to accommodative monetary policy, has transformed Bitcoin into a preferred safe-haven asset for investors seeking protection from dollar debasement and rising sovereign debt risks. Key Legislative Events and Market Catalysts Ahead Thielen also identified several catalysts that could continue to drive Bitcoin’s momentum in the coming weeks. Washington, D.C., is set to host “Crypto Week,” during which lawmakers will debate and potentially vote on significant crypto-related legislation. This includes the CLARITY Act for crypto regulatory oversight, the GENIUS Act for a stablecoin framework , and the Anti-CBDC Surveillance State Act. Additionally, Trump’s Digital Asset Task Force is expected to release a crypto policy report on July 22, which may include a Strategic Bitcoin Reserve proposal. Investors are also closely monitoring the upcoming Federal Reserve meeting on July 30, where rate cuts are anticipated, although CME futures currently indicate a 93% probability of rates remaining unchanged. With macroeconomic pressures mounting and legislative decisions approaching, Bitcoin’s role as a financial hedge may continue to expand, supporting its position alongside gold as a strategic asset in a shifting global economy. The post Bitcoin Positioned as Shield Against US Fiscal Crisis, Analyst Says appeared first on TheCoinrise.com .

Source: The Coin Rise