Pricing the possibility of the US facing a possible debt default, investors turned to precious metals and Bitcoin.
Financial experts who participated in the Bloomberg Market Pulse survey said gold would be the first thing they would buy in the event of a possible debt default.
Contrary to expectations, in the case of the debt crisis experienced by the USA in previous years, an increase in US bonds was also experienced. For this reason, some experts stated that the second product they will buy will be US bonds.
At this point, the third popular product was Bitcoin. Investors stated that the strength of the dollar would weaken if the US faces a possible risk of default, while they would prefer to buy Bitcoin instead of buying fiat currencies such as Japanese Yen, Swiss Franc or something else.
While the Biden government states that there is a risk of default if the debt ceiling is not increased by Congress, disaster scenarios continue to be drawn in such a case.
Biden met with members of Congress last week and said, "The whole world is in trouble. The CEO of JP Morgan described the picture as "potentially catastrophic." He also said that a possible default in the IMF would have very serious repercussions.
Gold, which made a good start to 2023 and rose above $2000 again, is the first safe haven for investors, and we see that Bitcoin is in a serious position in the ranking.
While experts said that the risk of default should not be underestimated, market reactions may be aimed at putting pressure on Congress.
It is expected that a possible default situation in the USA, albeit for a short time, will damage the status of the dollar as a global reserve currency, and gold and Bitcoin will rise in the face of this.
In an analysis published by Bloomberg recently, he stated that a rally to $35,000 for Bitcoin would not be a surprise.