There are talks among US politicians and economists about the country defaulting on its national debt. Congress usually approves raising the debt ceiling, so I don't see what's the issue here. But if somehow the US defaults, how would the crypto market react? Positively or negatively? The USD is the reserve currency of the world, so it's likely everything (stocks, crypto, etc) will crash alongside it.
What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.
What do you think? Is a US default good or bad for crypto in the short term? Your input will be greatly appreciated. Thank you.
In my opinion, the default in the US will start a global recession.
We will see a drop in business activity worldwide. Countries that export metals and hydrocarbons will suffer the most. In these countries, the situation with the economy will be catastrophic.
The United States will also suffer, but to a lesser extent. In Europe, everything will be quite stable, and the euro will rise against the US dollar.
Gold and Bitcoin will rise in price very strongly.
The entire European economy mainly depends on the US, and if their big brother collapses, I don't think they will be much more stable than the US. No one will be stable in the event of a US debt default because they are the center of the world economy as well as the holder of the world's money printing machine. But you're right, assets like gold and bitcoin will go up a lot because the demand for safe havens will spike there. That will benefit bitcoin but I don't expect it to happen because it will have a huge negative impact on our lives.