US gov't $1.5T debt interest will be equal 3XBitcoin market cap in 2023. Commentators believe that Bitcoin bulls do not need to wait long for the United States to start printing money again.
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The latest analysis of U.S. macroeconomic data has led one market strategist to predict quantitative tightening (QT) ending to avoid a "catastrophic debt crisis.
The U.S. Federal Reserve continues to remove liquidity from the financial system to fight inflation, reversing years of COVID-19-era money printing.
While interest rate hikes look set to continue declining in scope, some now believe that the Fed will soon have only one option - to halt the process altogether.
"Why the Fed will have no choice but to cut or risk a catastrophic debt crisis," Sven Henrich, founder of Northman trader, summarized on Jan. 27.
"Higher for longer is a fantasy not rooted in math reality." Henrich uploaded a chart showing interest payments on current U.S. government expenditure, now hurtling toward $1 trillion a year.
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.
The phenomenon has not gone unnoticed elsewhere in crypto circles. Popular Twitter account Wall Street Silver compared the interest payments as a portion of U.S. tax revenue.
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