$36T US Debt Bankruptcy Could Spark Bitcoin Surge

• Elon Musk cautioned that the US federal government might be on the verge of bankruptcy.
• The US national debt has reached $35.67 trillion.
• This situation is anticipated to stimulate the next Bitcoin surge.

American billionaire entrepreneur Elon Musk cautioned that the US could potentially face bankruptcy. The remarks by the Tesla CEO and owner of X Group followed comments from The Heritage Foundation economist EJ Antoni, who highlighted the recent $72 billion reduction in the Treasury’s cash reserves, which raised the debt incurred by President Joe Biden’s administration on the first day of the government fiscal year to $275 billion.

The USA’s Total Debt of $35.67 Trillion

As of 2:00 PM UTC this Thursday, the US debt clock had already climbed to a staggering $35.67 trillion. The total federal borrowing has surged significantly from the $34 trillion noted in January, $33.17 trillion in the fiscal year of 2023, and $22.97 trillion a decade ago.

Regrettably, the US presidential frontrunners, former President Donald Trump and Vice President Kamala Harris, have not presented detailed strategies to reduce or at least address the nation’s escalating debt. To date, both candidates have only introduced proposals that could further exacerbate the situation, as revealed in their recent statements and debate according to analysts.

One notable commitment from Trump regarding this issue, which seemed more like an effort to placate voters, was his declaration to establish a “government efficiency commission.” He intends for this agency to “carry out a complete financial and performance audit of the entire federal government.”

A key figure being mentioned as a possible head of this new commission is Musk. He has even come up with a catchy name for the commission: “Department of Government Efficiency” or D.O.G.E. We’re unsure how much of this is meant in jest, but we hope it fulfills its intended purpose if Trump follows through on his promise.

Bitcoin Performance

In the midst of all this discussion, Bitcoin (BTC) has remained around the $60K threshold. Its value saw a notable drop from last weekend’s $66K down to $60K by Wednesday, especially following Iran’s attack on Israel.

QCP Capital has even predicted that Bitcoin might dip further to $55K in the short term if it breaks its current key support levels. However, they cautioned investors not to lose sight of the larger picture.

The firm’s analysts anticipate that an influx of liquidity from China will eventually drive Bitcoin and cryptocurrency prices upwards. Additionally, the expected further rate cuts from the US Federal Reserve are likely to bolster this trend.

Bitcoin presently presents a mixed outlook due to its evolving correlation with stocks. Nonetheless, if it maintains its status as “digital gold” amidst potential economic instability, we could witness it reaching new heights in the worst-case scenarios outlined by Musk and other analysts.