Is Bitcoin Safer Than the US Dollar? Analysis on the Market Report

In today’s episode of The Market Reportanalyst and writer Marcel Pechman addresses the issue of whether Bitcoin (BTC) is safer than the US dollar, taking into account the risk of US government debt default. He also talks about why Bitcoin’s $28,000 resistance won’t be a walk in the park, and lastly, what’s going on between Celsius, Ethereum, and Lido staking. The Market Report airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.

The first news concerns a Bloomberg Markets survey showing Bitcoin as the third preferred asset in the event of a US 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 are the odds that Bitcoin will top $100,000 in the event of a US government shutdown? No spoilers; watch the show.

Moving on to the next item on the agenda: Pechman discusses why Bitcoin’s resistance at $28,000 will likely 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 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.

In the final part of the show, Pechman explains the movement of $780 million of Ether (ETH) from the Lido staking platform by Celsius – the bankrupt cryptocurrency lending platform. Nobody knows if the Ether (ETH) will be sold on the market and ultimately paid in US dollars to Celsius’s creditors. Do not miss it! The show is available exclusively on the YouTube channel of Cointelegraph Markets & Research.

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