U.S. Dollar Death Spiral ‘Crisis’ Fears Grow After Bank Of America Issues Shocking ‘$1 Trillion Every 100 Days’ Warning Amid Huge Bitcoin, Ethereum, XRP And Crypto Price Boom
03/04 update below. This post was originally published on March 2
Bitcoin—alongside the wider ethereum, XRP and crypto market—has rocketed higher over the last year (with some forecasting a even “bigger Wall Street wave coming”).
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The bitcoin price has topped $60,000 per bitcoin, making it a $1 trillion asset again, while the combined ethereum, XRP and crypto market is well over $2 trillion—triggering a serious warning of “massive collateral damage.”
Now, as new emails reveal “staggering” clues to the true identity of mystery bitcoin creator Satoshi Nakamoto, Bank of AmericaBAC analysts have warned the U.S. debt load is about to ramp up to add $1 trillion every 100 days—fueling a bitcoin price surge.
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“The U.S. national debt is rising by $1 trillion every 100 days,” Michael Hartnett, chief strategist of Bank of America, wrote in a note to clients seen by CNBC, adding it’s “little wonder ‘debt debasement’ trades closing in on all-time highs, i.e. gold [at] $2077/oz [and] bitcoin [at] $67,734.”
Hartnett predicted the newly created spot bitcoin exchange-traded funds (ETFs) that have taken Wall Street by storm over the last month are on course for a “blowout year,” in part because of the collapse of the U.S. dollar.
BlackRock’s IBIT, the largest new spot bitcoin ETF, has this week eclipsed $10 billion in assets under management while Fidelity’s FBTC has raked in $6 billion since their early January debut, pushing the bitcoin price higher in what’s been called bitcoin’s “IPO moment.”
Inflows into the new spot bitcoin ETFs have suddenly accelerated over the last two weeks, fueling wild predictions that bitcoin could “steal gold’s crown” as the world’s “prime store-of-value.”
U.S. national debt has skyrocketed in recent years, crossing the $34 trillion mark at the beginning of 2024, as Covid and lockdown stimulus measures—triggering wild predictions last year the bitcoin price could boom to $1 million per bitcoin.
03/04 update: Wharton Business School finance professor Joao Gomes has warned spiraling U.S. debt could plunge the U.S. into a financial crisis as soon as next year.
“It could derail the next administration, frankly,” Gomes told Fortune. “If they come up with plans for large tax cuts or another big fiscal stimulus, the markets could rebel, interest rates could just spike right there and we would have a crisis in 2025. It could very well happen. I’m very confident by the end of the decade one way or another, we will be there.”
Last month, The Black Swan author Nassim Taleb said he believes the U.S. economy is in a “death spiral … as long as you have Congress keep extending the debt limit and doing deals because they’re afraid of the consequences of doing the right thing, that’s the political structure of the political system, eventually you’re going to have a debt spiral,” Taleb said at an event, it was reported by Bloomberg. “And a debt spiral is like a death spiral.”
“This doesn’t end well,” Genevieve Roch-Decter, a former asset manager who writes the Grit Capital newsletter, posted to X.
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JPMorgan chief executive Jamie Dimon has predicted spiraling U.S. debt could spark a global “rebellion” while Bank of America’s CEO Brian Monyihan described the nation debt pile as the “most predictable crisis we’ve ever had.”
In February, legendary investor Jim Rogers warned the massive $34 trillion U.S. debt pile means a looming recession will be “the worst in [his] lifetime” after Federal Reserve chair Jerome Powell primed the crypto market for a $3.3 trillion price boom.
Last year, Jefferies’ analysts predicted the U.S. Federal Reserve will be forced to restart its money printer in 2024 due to a steep economic down turn, potentially collapsing the U.S. dollar and fueling a bitcoin price boom to rival gold.
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