Amidst the de-dollarization debate, Bitcoin emerged as a secure and profitable alternative, turbulent during times.
Cryptocurrency Market Updates
As US lawmakers prepare to vote on the much-anticipated bill to raise the $31.4 trillion debt ceiling, the United States’ macroeconomic outlook remains unstable, amidst a series of interest rate hikes by the US Federal Reserve and the regional bank crisis.
This is in addition to the global economic turmoil caused by the Ukraine conflict. Concerns about de-dollarization have recently emerged in this context, while a portion of financial market participants have begun to view Bitcoin as a safer alternative with high returns in uncertain times.
Despite the global financial turmoil, some of the largest corporations have begun implementing Web-3.0 despite the absence of regulatory clarity. In August 2022, the asset manager Blackrock introduced a spot Bitcoin private trust and partnered with the US-based cryptocurrency exchange Coinbase.
De-Dollarization Could Benefit Bitcoin
In a recent statement, Larry Fink, the chief executive officer of BlackRock, stated that the United States is at a high risk of losing its position as the Dollar’s reserve currency. In comparison, the market anticipates that the central bank will ease monetary policy, and rising inflation forces the Fed to continue tightening policy.
The United States debt ceiling crisis threatens its reserve currency status. There will be problem areas, such as commercial real estate.
Consequently, doubts remain regarding the ongoing economic-uncertainty, and whether it will benefit Bitcoin amidst fears of a commercial real estate market collapse in the coming months; leading cryptocurrency has increased by a staggering 63% since the beginning of 2023, following a challenging year in 2022.
