The post Binance CEO Reacts as BlackRock Prepares To Hedge $35T U.S. Debt Crisis with Bitcoin appeared on BitcoinEthereumNews.com.

BlackRock warns of a potential dollar crisis due to the spiraling U.S. debt. Bitcoin price surged to $64,000 following the Fed’s 0.5% interest rate cut. Binance’s Richard Teng welcomes BlackRock’s Bitcoin move with “believer club” remark. BlackRock, the world’s largest asset manager, recently sounded alarm on the ballooning U.S. debt, which now tops $35 trillion, and forecasts a potential dollar crisis. Consequently, the firm is showing increasing interest in Bitcoin. U.S. Debt Fuels Bitcoin Adoption With a massive $10 trillion in assets under management, BlackRock is concerned about the rapid rise in U.S. federal debt, which increases by $1 trillion every 100 days. With the debt climbing, BlackRock sees rising interest from institutions turning to Bitcoin as a hedge against possible economic instability. The company’s chief investment officer and other key leaders highlighted these concerns in a recent report, emphasizing Bitcoin’s appeal as an alternative reserve asset. While traditionally linked to risk assets like equities, Bitcoin’s core long-term drivers are distinct, offering diversification during uncertain times. Binance executive Richard Teng commented on the situation, reposting BlackRock’s stance with the caption, “Welcome to the believer club,” a signal of his full support of the decision.  Bitcoin Surges After Fed Interest Rate Cut The Federal Reserve’s 50 basis point interest rate cut triggered a fresh wave of activity within crypto. Following the announcement, Bitcoin’s price surged past $64,000, with many traders predicting further gains. The rate cut marks the start of a new liquidity cycle, potentially positioning Bitcoin for a major price rally. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, pointed out that the growing debt and potential for a dollar crisis make Bitcoin an increasingly attractive option. He referred to the cryptocurrency as the “2nd amendment of money,” highlighting its role as a safeguard against monetary instability. BlackRock’s Growing Influence…

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Filed under: News - @ September 21, 2024 12:22 pm