Bitcoin Approaches $70,000 in the Face of Market Turmoil amid The $35 trillion US National Debt Bombshell

Bitcoin is now on the brink of the $70,000 threshold following a historic speech by former U.S. President Donald Trump at the Bitcoin 2024 conference in Nashville, as the US national debt surpasses the $35 trillion milestone. Financial markets are also experiencing an ongoing upward trend.

The debt of the United States has surpassed $35 trillion, as indicated by data from a debt aggregator. This suggests that the debt per citizen is now slightly higher than $100,000, while the debt per taxpayer is $267,000. Its debt-to-GPT ratio has increased from 56.8% in 2000 to 122.55%, and from 34.6% in 1980.

Markets are tense as the Federal Open Market Committee (FOMC) prepares to convene this week, despite the recent increases. Federal Reserve Chair Jerome Powell, whose words have a significant impact on both traditional and cryptocurrency markets, is the focal point of investor attention.

Powell’s post-meeting press conference will be closely examined for indications of the central bank’s future trajectory, despite the fact that no rate cuts are anticipated at this meeting. The September meeting is the primary focus of market participants, as rate reductions are largely priced in.

Market participants currently anticipate a 96% likelihood of an interest rate reduction in September, as indicated by the FedWatch instrument of the CME Group. The potential for interest rate cuts is advantageous for risk assets, such as cryptocurrencies, as it typically increases liquidity.

Nevertheless, the economic calendar for this week is replete with data points that could potentially result in volatility, as a number of companies within the S&P 500 are reporting their earnings.

Bitcoin has experienced a recent increase in value following Trump’s speech at the Bitcoin 2024 conference, during which he outlined his strategy to “establish the United States as the crypto capital of the world and the Bitcoin superpower of the world.”

Donald Trump has also committed to ending the “anti-crypto crusade” spearheaded by Vice President Kamala Harris and President Joe Biden if he is elected.

It is important to mention that the President of the United States does not have the authority to remove appointed commissioners from the SEC. However, he or she has the power to appoint a new commissioner.

In addition, Trump declared his intention to have all remaining Bitcoins mined within the United States and to establish a “Bitcoin and crypto presidential advisory council.” Furthermore, he underscored the significance of safeguarding the right to self-custody of cryptocurrency assets.

Senator Cynthia Lummis (R-Wy) introduced a legislative proposal to establish a U.S. Federal Reserve holding of 1 million Bitcoins over the next five years in response to Trump’s speech. The Bitcoins would be retained for a minimum of 20 years and would be used to reduce the country’s debt, as per the proposal.

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