![\"\"](\"http:\/\/www.fresnoforeclosure.com\/wp-content\/uploads\/2025\/03\/e27-44.png\")
<\/p>\n<\/p>\n
The market wrap offers a fascinating snapshot of where we stand on March 28, 2025\u2014a moment marked by cautious sentiment, looming trade tensions, and a bold proposition from Senator Cynthia Lummis about Bitcoin\u2019s potential to halve the US national debt over two decades. Let me offer my perspective on this complex tapestry, weaving together the threads of traditional finance, geopolitical strategy, and the disruptive promise of cryptocurrency.<\/p>\n
The global risk sentiment pulling back isn\u2019t surprising given the spectre of reciprocal tariffs and an escalating trade war under US President Donald Trump\u2019s administration. Trump\u2019s promise to announce new tariffs by April 2, following the already imposed 25 per cent tariff on car imports, has investors on edge. Trade wars are notoriously double-edged swords\u2014they can protect domestic industries in the short term but often lead to higher consumer prices, disrupted supply chains, and retaliatory measures that dampen global growth.<\/p>\n
The cautious mood in the markets reflects this uncertainty, with investors weighing the immediate risks against the longer-term implications. The fact that Asian equities are trending lower in early trading and US equity futures suggest a flat open only underscores the hesitancy rippling through the financial world.<\/p>\n
Amid this unease, attention is shifting toward key economic data points like the upcoming US personal consumption expenditures (PCE) report due later today. As the Federal Reserve\u2019s preferred gauge of inflation, the PCE will offer critical insights into the health of the US economy. If it signals slowing growth\u2014perhaps exacerbated by trade tensions\u2014we could see louder calls for interest rate cuts.<\/p>\n
The bond market seems to be pricing in this possibility already, with shorter-maturity yields dipping as the prospect of Fed easing looms. The steepening of the 10Y-2Y Treasury yield curve, with the 10-year yield ticking up to 4.36 per cent and the 2-year falling to 3.99 per cent, suggests a nuanced outlook: short-term relief from potential rate cuts, but longer-term concerns about inflation or debt sustainability. It\u2019s a delicate balance, and one that investors are watching closely.<\/p>\n
Meanwhile, defensive sectors like Consumer Staples and Health Care are holding up better than the broader MSCI US index, which slipped 0.4 per cent. This flight to safety is a classic move when uncertainty reigns\u2014staples and health care tend to weather economic storms more resiliently than cyclical sectors. Gold\u2019s 1.3 per cent climb toward US$3,100 per ounce reinforces this haven-seeking behaviour, as does Brent crude\u2019s modest rise to US$75 per barrel despite the tariff threats.<\/p>\n
The US Dollar index, down 0.2 per cent, seems to be taking a breather after recent gains, perhaps reflecting mixed signals between Fed cut expectations and the dollar\u2019s safe-haven status. Across the Pacific, Tokyo\u2019s accelerating inflation keeps the Bank of Japan on its gradual rate-hike path, a contrast to the Fed\u2019s potential pivot that highlights the diverging monetary policies shaping global markets.<\/p>\n
Also Read:\u00a03 stages of marketing for your startup that can drive effective results<\/a><\/strong><\/p>\n But the real headline-grabber in this market wrap is Senator Cynthia Lummis\u2019s audacious claim at the DC Blockchain Summit that Bitcoin could slash the US national debt\u2014currently a staggering US$36 trillion\u2014in half over 20 years. It\u2019s a bold statement, one that demands scrutiny given its implications for both fiscal policy and the role of digital assets in the global economy.<\/p>\n Lummis argues that Bitcoin\u2019s scarcity (capped at 21 million coins), immutability (thanks to blockchain\u2019s tamper-proof nature), and storability make it an ideal long-term asset for national stability. She\u2019s not alone in this vision\u2014Microstrategy CEO Michael Saylor, a vocal Bitcoin advocate, doubled down at the summit, calling it \u201cManifest Destiny\u201d for the US Together, they\u2019re pushing for Bitcoin to become a strategic reserve asset, a move that could redefine America\u2019s financial playbook.<\/p>\n Let\u2019s unpack this idea. The US national debt has ballooned over decades, fuelled by deficit spending, wars, tax cuts, and economic stimulus packages. At US$36 trillion, halving it to US$18 trillion by 2045 would be a monumental feat. Lummis\u2019s plan hinges on the government acquiring and holding a significant Bitcoin stash\u2014Saylor has suggested five per cent of all Bitcoin, or roughly 1 million coins.<\/p>\n At today\u2019s price of US$86,680 per Bitcoin, that\u2019s about US$86.7 billion\u2014a drop in the bucket compared to the debt. The magic lies in Bitcoin\u2019s potential appreciation. If its price were to soar 250-fold over 20 years, as some optimistic models suggest, that US$86.7 billion could balloon to US$21.7 trillion\u2014enough to offset half the current debt, assuming it doesn\u2019t grow further (a big assumption given historical trends).<\/p>\n Is this plausible? Bitcoin\u2019s historical performance lends some credence. Since 2010, its price has surged from pennies to tens of thousands, driven by adoption, scarcity, and speculative fervor. But past performance isn\u2019t a crystal ball. A 250x increase from US$86,680 would push Bitcoin to over US$21 million per coin by 2045\u2014an astronomical leap requiring sustained demand, regulatory clarity, and global economic shifts favouring digital assets.<\/p>\n Critics, like Judd Legum in an X post last year, have called this math \u201cimplausible,\u201d noting that even static debt levels would demand unprecedented growth. Add in compounding debt from interest and new deficits, and the hurdle grows steeper.<\/p>\n Yet, Lummis and Saylor see Bitcoin as more than a speculative bet\u2014it\u2019s a hedge against a weakening dollar and a tool to \u201cshore up\u201d its status as the world\u2019s reserve currency. With the dollar losing purchasing power over time (a point Lummis emphasised), a rising Bitcoin stash could offset that erosion, providing a growing asset to balance the books.<\/p>\n It\u2019s a radical rethink of sovereign wealth, akin to nations hoarding gold in the 20th century. Posts on X reflect a mix of enthusiasm and skepticism\u2014some hail it as visionary, others dismiss it as crypto hype. The sentiment is split, but the idea\u2019s boldness is undeniable.<\/p>\n Also Read:\u00a0When tariffs danced with Bitcoin and markets held their breath<\/a><\/strong><\/p>\n Today\u2019s Bitcoin market offers a microcosm of this tension. At US$86,680, it\u2019s bracing for a record-breaking US$16.5 billion options expiry\u2014yet a recent drop below $90,000 has flipped the script.<\/p>\n Bullish call options, with US$7.6 billion tied to strikes at US$92,000 or higher, now look shaky, needing a 6.4 per cent rally by day\u2019s end. Bears, meanwhile, dodged a US$3 billion bullet, gaining leverage that could pressure prices short-term. This volatility underscores Bitcoin\u2019s dual nature: a high-stakes asset with transformative potential, but also a rollercoaster prone to sharp swings.<\/p>\n Contrast this with Ethereum, where spot ETFs saw a US$4.2 million net outflow yesterday. Unlike Bitcoin\u2019s haven appeal, Ethereum\u2019s ecosystem\u2014tied to smart contracts and decentralised finance\u2014seems less insulated from risk-off sentiment. Its US$6.871 billion ETF net asset value pales beside Bitcoin\u2019s dominance, hinting at differing investor narratives. Bitcoin\u2019s story is increasingly one of scarcity and stability; Ethereum\u2019s is innovation and utility, with less immediate allure in turbulent times.<\/p>\n So, where do I land on all this? I\u2019m both intrigued and cautious. The market\u2019s current mood\u2014wary of tariffs, hopeful for Fed cuts, and leaning into havens\u2014feels like a prelude to bigger shifts. Lummis\u2019s Bitcoin proposal is a lightning rod: it challenges conventional fiscal wisdom while spotlighting cryptocurrency\u2019s growing clout.<\/p>\n The data backs its theoretical upside\u2014Bitcoin\u2019s scarcity and past growth are real\u2014but the leap to national debt savior requires faith in uncharted waters. Trade wars and inflation could bolster its case if traditional systems falter, yet execution risks (regulation, custody, market crashes) loom large.<\/p>\n Ultimately, we\u2019re at a crossroads. The markets are jittery, policymakers are experimenting, and Bitcoin\u2019s role is up for debate. Whether it\u2019s a pipe dream or a game-changer, Lummis has ignited a conversation that\u2019s worth watching\u2014preferably with a keen eye on the PCE data tonight and a tariff announcement next week. The stakes, like the debt, are sky-high.<\/p>\n —<\/p>\n Editor\u2019s note:\u00a0e27<\/b>\u00a0aims to foster thought leadership by publishing views from the community. Share your opinion by\u00a0submitting<\/a>\u00a0an article, video, podcast, or infographic.<\/p>\n Join us on\u00a0Instagram<\/a>,\u00a0Facebook<\/a>,\u00a0X<\/a>, and\u00a0LinkedIn<\/a>\u00a0to stay connected.<\/p>\n Image credit: DALL-E<\/p>\n The post Can Bitcoin rescue US debt? Senator Lummis says yes<\/a> appeared first on e27<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" The market wrap offers a fascinating snapshot of where we stand on March 28, 2025\u2014a moment marked by cautious sentiment, looming trade tensions, and a bold proposition from Senator Cynthia Lummis about Bitcoin\u2019s potential to halve the US national debt over two decades. Let me offer my perspective on this complex tapestry, weaving together the […]<\/p>\n","protected":false},"author":1,"featured_media":259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14],"tags":[],"_links":{"self":[{"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/posts\/257"}],"collection":[{"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/comments?post=257"}],"version-history":[{"count":2,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/posts\/257\/revisions"}],"predecessor-version":[{"id":260,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/posts\/257\/revisions\/260"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/media\/259"}],"wp:attachment":[{"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/media?parent=257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/categories?post=257"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.fresnoforeclosure.com\/index.php\/wp-json\/wp\/v2\/tags?post=257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}