Analyst Marcel Pechman’s report was released in a new edition of “The Market Report” via Cointelegraph. Among his most outstanding phrases, he refers to the fact that according to a Bloomberg survey, Bitcoin is the third preferred asset in the event of debt default.
The US is in a complex month due to the default risk of the US debt. It is for this reason that a recognized analyst in the world of cryptocurrencies was encouraged to address the issue of whether Bitcoin is more secure than the dollar US.
Analyst Marcel Pechman’s report was released in a new edition of “The Market Report” via Cointelegraph. Among his most outstanding phrases he refers to the fact that according to a Bloomberg survey, Bitcoin is the third preferred asset in case of debt default.
For Pechman, it is no surprise that Bitcoin outperforms fiat currencies in investor choice, considering that the central banks of the eurozone, Japan, Canada, England and Switzerland boosted their borrowing programs with the US Federal Reserve in March 2023. There is a high correlation with fiat currencies, which exposes the asset class to significant risk if there is a US debt default.
Pechman predicts that investor allocations to gold would be 10 times those of Bitcoin due to the cryptocurrency’s lower market capitalization and high volatility.. On the plus side, 11% of retail investors would add Bitcoin to their portfolio in the event of a US government shutdown, compared to 46% who would add gold.
What did the guru say about the Bitcoin price?
Pechman discusses why Bitcoin’s resistance at $28,000 is likely to be stronger than expected. The recent correction to $25,800 was likely caused by high transaction fees, but Pechman explains that the network worked exactly as intended and that the high fees are the network’s defense against spam.
The problem holding back a quick rally above $28,000 is the positioning of professional traders using derivatives. Before the event, both traders and market makers were already between neutral and bearish.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
