In the next election, the prominent policy issues take into account Federal Reserve independence, inflation, and government debt and deficit. Bitcoin is playing the role of an alternative currency confronting the US Dollar hence the policies affecting the dollar’s outlook may also have an impact on the top crypto. Recently, Grayscale has provided its viewpoint regarding this scenario.
Macro US Policy Changes to Likely Depreciate Dollar but Elevate Bitcoin
The well-known crypto asset management firm mentioned that the dollar could devalue while Bitcoin may leverage the policy changes. In this way, the policy alterations paving the way for the debt of the US government could pressurize the native traditional currency of the United States. In addition to this, the respective scenario could also result in a decrease in the independence of the Federal Reserve.
Moreover, the spiking inflation rate could add to this along with a dip in the leadership of the US. On the other hand, Bitcoin is touching its all-time highs. This has pushed the candidates to discuss topics dealing with the crypto market. Donald Trump, the former US President, recently appeared in an interview, discussing Bitcoin. He said that he permits the supporters to buy merchandise by using the crypto token.
An exclusive survey that Harris Poll conducted disclosed the crypto investors’ focus while supporting the candidates. As per that survey, they will potentially take into account the views of the candidates on Bitcoin. Apart from that, they would also look for clues regarding potential crypto legislation. While highlighting the macro issues, Grayscale mentioned that the US government’s debt and deficits can negatively impact the dollar.
US Economic Landscape Pushes Investors to Move toward Alternatives Such as Bitcoin
Additionally, the overseas investors hold the fifty percent of the government debt. Along with that, the budget deficits of the federal government have historically led to broader trade deficits. Furthermore, the increasing amount of net liabilities may push people to leave the government bonds. This will potentially move the investors toward alternatives such as Bitcoin.
The survey pointed out that inflation is significant among the pressing issues for the US. Contrarily, people consider Bitcoin to be a store of value to stand against inflation. Irrespective of the evolution in the crypto regulatory landscape of the country, the geopolitical and macroeconomic trends driving Bitcoin and the dollar seem to continue. These things include rising debt and huge budget deficits.
