{"id":20513,"date":"2023-05-03T08:06:17","date_gmt":"2023-05-03T08:06:17","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/btc-to-surge-by-20000-if-the-us-defaults-on-debt-obligations-featured-bitcoin-news\/"},"modified":"2023-05-03T08:06:17","modified_gmt":"2023-05-03T08:06:17","slug":"btc-to-surge-by-20000-if-the-us-defaults-on-debt-obligations-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/btc-to-surge-by-20000-if-the-us-defaults-on-debt-obligations-featured-bitcoin-news\/","title":{"rendered":"BTC to Surge by $20,000 if the US Defaults on Debt Obligations \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Geoff Kendrick, the head of forex research at the banking institution Standard Chartered, recently said that the price of bitcoin is likely to jump by $20,000 in the event of the United States defaulting on its obligations. According to Kendrick, while bitcoin is likely to surge when the U.S. defaults, other cryptocurrencies like ethereum are likely to go down. <\/strong><\/p>\n

U.S. Debt Default a \u2018Low-Probability\u2019 and \u2018High-Impact Event\u2019<\/h2>\n

As fears mount that the United States government may default on its debt obligations, Geoff Kendrick, a forex research head at Standard Chartered, said such an event would cause the price of bitcoin (BTC<\/a>) to surge by more than $20,000. While Kendrick characterizes the default as a \u201clow-probability, high-impact event,\u201d he nonetheless suggested that the top cryptocurrency\u2019s reputation for performing well when markets are down as well as its safe haven status means the nearly 70% surge in its price is possible.<\/p>\n

However, the Forex analyst said he believes the surge will not commence immediately after the default. Instead, the surge is likely to be preceded by a price drop of $5,000 before it jumps by $25,000. According to Kendrick, only the price of bitcoin is likely to follow that trajectory while other cryptos like Ethereum are likely to fall when the U.S. defaults.<\/p>\n

\u201cSo actually, the optimal trade would probably be long bitcoin, short ethereum. That sort of mix would probably be a good expression of this,\u201d Kendrick said<\/a>.<\/p>\n

BTC<\/a> to Top $100,000 by the End of 2024<\/h2>\n

As recently reported<\/a> by Bitcoin.com News, Treasury Secretary Janet Yellen warned that the United States government is likely to default on its obligations on June 1 if Congress fails to raise or suspend the debt limit. According to Yellen, such an event would \u201cproduce an economic and financial catastrophe.\u201d<\/p>\n

Besides predicting the $20,000 price jump, Kendrick recently said the BTC<\/a> would top $100,000 by the end of 2024. In a recently published note, the analyst reportedly listed the U.S. banking turmoil, the halving event,<\/a> and the Federal Reserve rate hikes among some of the factors that are likely to help drive up the price of BTC<\/a>. However, the note is said to exclude the much-talked-about U.S. debt default.<\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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