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Fidelity Digital Assets

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Debt Tops $40T: Could Inflation Boost Bitcoin?
finance1 month ago

Debt Tops $40T: Could Inflation Boost Bitcoin?

As the U.S. national debt climbs past $40 trillion, the article emphasizes that debt-to-GDP, not the headline total, matters for repayment risk; the CBO projects debt held by the public at about 101% of GDP this year and potentially 120% by 2036, raising questions about growth, spending cuts, taxes, and inflation. It argues that inflationary money printing could bolster Bitcoin as a scarce asset, supported by Fidelity research linking money-supply expansion to Bitcoin price movement (though the correlation has weakened recently). The piece notes Bitcoin is not a Motley Fool stock pick, but its programmed scarcity could attract long-term demand if money supply grows.

Bitcoin Volatility Soars Near Two-Year High Amid ETF Excitement
cryptocurrency-markets2 years ago

Bitcoin Volatility Soars Near Two-Year High Amid ETF Excitement

Bitcoin is nearing a two-year high, with increased activity in derivatives markets and a changing macroeconomic backdrop potentially leading to heightened volatility. Fidelity Digital Assets's Chris Kuiper notes that despite low volatility, some participants are becoming bullish, with metrics in Bitcoin derivatives approaching levels last seen in late 2021. The US Federal Reserve's potential policy changes and the expectation of Bitcoin exchange-traded funds also contribute to the evolving landscape. As Bitcoin trades around $46,800, market participants should brace for increased volatility ahead.