A snowballing U.S. national debt and currency depreciation are expected to lead Bitcoin's next upwar..

Yuanta 證's "Bitcoin Price Is Attractive Bottom"
Interest alone in U.S. Treasury Deficit Approaches $1.25 Trillion Annually

A snowballing U.S. national debt and currency depreciation are expected to lead Bitcoin's next upward cycle, according to a report.

Yuanta Securities analyzed on the 14th that as the U.S. fiscal deficit faces limitations due to interest burdens, the movement of funds to "hard money" such as Bitcoin (BTC) and gold, which have limited supply, is becoming clear, while stablecoins and real-linked assets (RWA) are emerging as new demand sources for short-term U.S. government bonds.

According to Yuanta Securities, the U.S. fiscal deficit in the second quarter of this year reached $1.78 trillion, of which $1.25 trillion is a net interest expense that cannot be reduced by spending cuts.

Lee Hwan-wook, a researcher at Yuanta Securities, said, "In the end, currency issuance remains the only option at a time when austerity, default and wealth redistribution are all politically constrained," adding, "The cost of this will be borne by bondholders."

In fact, China's holdings of U.S. government bonds halved from $1.32 trillion in November 2013 to $6333.4 billion in June, while central banks in emerging economies have increased their gold reserves by 20.3% since the end of 2019.