$35T US national debt could bolster Bitcoin’s adoption as ‘hard money’

Bitcoin could see a new all-time high due to the looming US federal debt, which surpassed $105,000 for every living person in the country.

The growing national debt of the world’s largest economy, the United States, could catalyze mass Bitcoin adoption, according to analysts.

On July 30, the US federal government’s national debt surpassed $35 trillion for the first time in history, raising concerns about the health of the economy.

However, the ballooning US debt could fortify Bitcoin’s (BTC) adoption and its status as a safe-haven asset, according to Matt Bell, the CEO of Turbofish. He told Cointelegraph:

“The recent news of the US national debt reaching the record high of $35 trillion highlights growing concerns around the sustainability of traditional fiat currencies. This situation stresses the importance of Bitcoin as ‘hard money’ — a decentralized and deflationary asset that offers a hedge against currency devaluation.”

During periods of fiat currency devaluation, investors often seek out safe-haven assets like Bitcoin and Gold, to help protect their purchasing power. Bitcoin price has historically increased during periods of distress in the legacy financial system.

Related: Over 41.5% of Mt. Gox Bitcoin distributed as creditors continue to hodl

Will US national debt catalyze next Bitcoin all-time high?

The growing US national debt could propel Bitcoin prices to a new all-time high.

Bitcoin price will benefit from Government bonds becoming less attractive since a large part of the US government’s spending is directed toward debt servicing, not toward productive sectors, according to Bitfinex analysts, who told Cointelegraph:

“The US national debt of $35 trillion highlights the importance of Bitcoin as ‘hard money’ and potentially act as a catalyst for the next upward cycle in Bitcoin… This may drive investors to seek alternative stores of value like Bitcoin, which is often perceived as a hedge against economic inefficiencies.”

The analysts added that the looming debt crisis would be avoided if the US dollar was a ‘hard currency,” which doesn’t have an unlimited supply. The analysts explained:

“A lot of the current US national debt arises due to inflation, loss of value in the currency against other currencies, and the ease with which any government can print as much money as it wants. Bitcoin can rightly be called one of the only true hard currencies because it’s protected against inflation to a large degree, has a limited supply, is durable due to its digital nature and is increasingly available.”

Related: Bitcoin, gold on track to break out as ‘macro summer’ begins — Analyst

Is Bitcoin’s price on track to break out in September?

Bitcoin price could be on track to break out of its current range in September, according to popular crypto analyst Rekt Capital, who wrote in a July 30 X post:

“Bitcoin is still on track for a September breakout. History suggests that a breakout from the ReAccumulation Range mere ~100 days after the Halving was always going to be unlikely.”

The breakout could be catalyzed by the growing concerns in the legacy fiscal system, according to Turbofish CEO Bell, who added:

“As more individuals and institutions recognize the limitations of the current financial system, we could see increased adoption of Bitcoin and other cryptocurrencies… This growing awareness and adoption could indeed act as a catalyst for the next leg up in Bitcoin’s cycle, driving its value higher as it becomes a more integral part of the global financial landscape.”

Bitcoin price is up over 8.3% in the past month, trading just above the $66,000 mark as of 10:50 am UTC, according to Bitstamp data. Bitcoin is currently 10.5% down from its all-time high of $73,750.