- Bitcoin (BTC) has been steadily moving below the $35,000 level in the last 24 hours, while providing gains for Dogecoin (DOGE) investors.
- Some investors have noted that they expect Bitcoin to serve as a hedge like “traditional market offerings,” such as stocks, as a potential price catalyst.
- Monday’s rise was driven by the announcement that Georgia and Dubai would use the services of the payment company Ripple, boosting trader sentiment.
Why has Bitcoin’s digital gold role become so crucial? Views on the current debt situation in the U.S. and Bitcoin’s future.
Why Is Bitcoin’s Digital Gold Role Important?
Bitcoin (BTC) has been steadily moving below the $35,000 level in the last 24 hours, while providing gains for Dogecoin (DOGE) investors. Tokens of leading blockchains have lost up to 3% as investors possibly took profits following last week’s overall crypto rally.
SOL, according to data, wiped out gains after nearly a 70% increase in the past month. Meanwhile, XRP reversed its gains after rising by 10% on Monday. Monday’s rise was driven by the announcement that Georgia and Dubai would use the services of the payment company Ripple, boosting trader sentiment.
Some investors have noted that they expect Bitcoin to serve as a hedge like “traditional market offerings,” such as stocks, as a potential price catalyst. Richard Mico, CEO of Banxa, said:
“I think there is increasing recognition of Bitcoin’s role as a hedge against this worsening financial situation, as there’s been an increase in public awareness of the serious financial situation that the United States is facing.”
Bitcoin’s Vision as Gold 2.0
Mico stated, “The United States currently owes over $33 trillion, not to mention unfunded liabilities of around $170 trillion. And really, the only way out of this impending debt crisis is quantitative easing or money printing that will weaken the dollar,” suggesting that Bitcoin is ready to be “gold 2.0” in the face of such difficulties. Mico concluded:
“There will be pullbacks and more volatility in general, but the overall setup looks more positive for Bitcoin and crypto.”
