Cryptocurrency billionaire Mike Novogratz says the wave of US debt accumulation gives him 34 trillion reasons to have unwavering confidence in Bitcoin’s future. Meanwhile, on-chain analytics platform Santiment highlights FOMO and FUD around Bitcoin.
Cryptocurrency billionaire: There are a trillion reasons to trust BTC!
Galaxy Digital CEO Mike Novogratz says the US government spends billions of dollars every day just to pay interest on the country’s $34,230 trillion debt. Novogratz said, “I can think of 34 trillion reasons to believe in BTC… America spends more than $2 billion every day just on interest payments. That’s over $83 million every hour!!!” says.
Many Bitcoin investors view BTC as a store of value. It also looks at it as a hedge against fiat currency depreciation. Mike Novogratz said in April 2023 that he does not want Bitcoin to reach $1 million “any time soon.” Because he stated that this would mean that instability had begun in the USA.
Galaxy Digital CEO draws attention to the problems in the US economy!
Mike Novogratz warns that some of the nation’s largest foreign creditors now have less appetite for accumulating U.S. debt through Treasuries. He also probably says that the US will soon witness financial problems. The reason for this is that the government continues to expand its balance sheet in a high interest rate environment. In this context, Novogratz makes the following statement:
Traditionally, everyone lends you money because we are the reserve currency… There is a lot of trust in America, so the Chinese, the Middle Easterners, the Russians. But suddenly we started imposing sanctions on the Russians, and in the short term the Russians will never lend money to the United States again. The Chinese are worried about us, so they’re buying less and less Treasuries. The Japanese still own a large portion of our debt, but foreigners want to buy less of it. The world is not as united around US leadership as it once was. As interest rates go up, and this is a real problem, debt payments go up… It’s like a credit card: you take out $1,000 in credit card debt and they charge you 21%… That’s $200 a year. You can’t pay it back and the debt just keeps growing and growing and growing.
Investors are watching out for increased FOMO and FUD!
Meanwhile, cryptokoin.comAs you follow from , the leading cryptocurrency reached the 52 thousand dollar limit. Traders are engaged in a battle around Bitcoin’s $50,000 price, according to on-chain analytics platform Santiment. Santiment notes that Fear of Missing Out (FOMO) or Fear, Uncertainty and Doubt (FUD) plays an important role when the Bitcoin price is at a psychological level.
According to Santiment, whether Bitcoin stays above $50,000 in the long term will be determined by social metrics of FOMO and FUD. The market intelligence platform shared a screenshot containing data revealing the scope of these measurements. Santiment’s data showed an increase in crowd enthusiasm as BTC rose above $50,000 on February 13. At the same time, there was a significant increase in the number of users discussing whether the leading cryptocurrency will continue to rise towards $55,000. The increase in discussions indicates that greed is increasing among Bitcoin investors. Therefore, it is possible that it affects future price development.
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