{"id":544825,"date":"2023-01-28T16:46:54","date_gmt":"2023-01-28T13:46:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\/"},"modified":"2023-01-28T16:46:54","modified_gmt":"2023-01-28T13:46:54","slug":"us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\/","title":{"rendered":"# US gov\u2019t $1.5T debt interest will be equal 3X Bitcoin market cap in 2023"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41ae7a89a1d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41ae7a89a1d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\/#%E2%80%9D_US_govt_15T_debt_interest_will_be_equal_3X_Bitcoin_market_cap_in_2023_%E2%80%9C\" >&#8221; US gov\u2019t $1.5T debt interest will be equal 3X Bitcoin market cap in 2023 &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\/#Analyst_Fed_will_have_%E2%80%9Cno_choice%E2%80%9D_with_rate_cuts\" >Analyst: Fed will have \u201cno choice\u201d with rate cuts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/us-govt-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\/#Crypto_pain_before_pleasure\" >Crypto pain before pleasure?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_US_govt_15T_debt_interest_will_be_equal_3X_Bitcoin_market_cap_in_2023_%E2%80%9C\"><\/span>&#8221; US gov\u2019t $1.5T debt interest will be equal 3X Bitcoin market cap in 2023 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Commentators believe that Bitcoin (BTC) bulls do not need to wait long for the United States to start printing money again.<\/p>\n<p>The latest analysis of U.S. macroeconomic data has led one market strategist to predict quantitative tightening (QT) ending to avoid a \u201ccatastrophic debt crisis.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Analyst_Fed_will_have_%E2%80%9Cno_choice%E2%80%9D_with_rate_cuts\"><\/span>Analyst: Fed will have \u201cno choice\u201d with rate cuts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The U.S. Federal Reserve continues to remove liquidity from the financial system to fight inflation, reversing years of COVID-19-era money printing.<\/p>\n<p>While interest rate hikes look set to continue declining in scope, some now believe that the Fed will soon have only one option \u2014 to halt the process altogether.<\/p>\n<p>\u201cWhy the Fed will have no choice but to cut or risk a catastrophic debt crisis,\u201d Sven Henrich, founder of NorthmanTrader, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/NorthmanTrader\/status\/1619057938576072704\">summarized<\/a> on Jan. 27.<\/p>\n<blockquote><p>\u201cHigher for longer is a fantasy not rooted in math reality.\u201d<\/p><\/blockquote>\n<p>Henrich uploaded a chart showing interest payments on current U.S. government expenditure, now hurtling toward $1 trillion a year.<\/p>\n<p>A dizzying number, the interest comes from U.S. government debt being over $31 trillion, with the Fed printing trillions of dollars since March 2020. Since then, interest payments have increased by 42%, Henrich noted.<\/p>\n<p>The phenomenon has not gone unnoticed elsewhere in crypto circles. Popular <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> account Wall Street Silver compared the interest payments as a portion of U.S. tax revenue.<\/p>\n<p>\u201cUS paid $853 Billion in Interest for $31 Trillion Debt in 2022; More than Defense Budget in 2023. If the Fed keeps rates at these levels (or higher) we will be at $1.2 trillion to $1.5 trillion in interest paid on the debt,\u201d it\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WallStreetSilv\/status\/1619090919432798210?s=20\">wrote<\/a>. <\/p>\n<blockquote><p>\u201cThe US govt collects about $4.9 trillion in taxes.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/f8d55a22-bd2e-48aa-b5f2-62617329673c.png\"><figcaption style=\"text-align: center;\"><em>Interest rates on U.S. government debt chart (screenshot). Source: Wall Street Silver\/ Twitter<\/em><\/figcaption><\/figure>\n<p>Such a scenario might be music to the ears of those with significant Bitcoin exposure. Periods of \u201ceasy\u201d liquidity have corresponded with increased <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite for risk assets across the mainstream investment world.<\/p>\n<p>The Fed\u2019s unwinding of that policy accompanied Bitcoin\u2019s 2022 bear market, and a \u201cpivot\u201d in interest rate hikes is thus seen by many as the first sign of the \u201cgood\u201d times returning. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_pain_before_pleasure\"><\/span>Crypto pain before pleasure?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Not everyone, however, agrees that the impact on risk assets, including crypto, will be all-out positive prior to that. <\/p>\n<p><strong><em>Related:\u00a0Bitcoin \u2018so bullish\u2019 at $23K as analyst reveals new BTC price metrics<\/em><\/strong><\/p>\n<p>As Cointelegraph reported, ex-BitMEX CEO Arthur Hayes believes that chaos will come first, tanking Bitcoin and altcoins to new lows before any sort of long-term renaissance kicks in.<\/p>\n<p>If the Fed faces a complete lack of options to avoid a meltdown, Hayes believes that the damage will have already been done before QT gives way to quantitative easing.<\/p>\n<p>\u201cThis scenario is less ideal because it would mean that everyone who is buying risky assets now would be in store for massive drawdowns in performance. 2023 could be just as bad as 2022 until the Fed pivots,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/entrepreneurshandbook.co\/bouncy-castle-1b92183c61a1\">wrote<\/a> in a blog post this month.<\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/us-gov-t-1-5t-debt-interest-will-be-equal-3x-bitcoin-market-cap-in-2023\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; US gov\u2019t $1.5T debt interest will be equal 3X Bitcoin market cap in 2023 &#8220; Commentators believe that Bitcoin (BTC) bulls do not need to wait long for the United States to start printing money again. The latest analysis of U.S. macroeconomic data has led one market strategist to predict quantitative tightening (QT) ending&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/f0142d1a-2da8-482c-9edb-e5d7e7679968.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,70550,70551,73785],"class_list":["post-544825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-federal-reserve","tag-inflation","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=544825"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544826"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}