Craig Shapiro, the macro strategist at the Bear Traps Report, made a case for holding Bitcoin BTC/USD as he explained how the value of the traditional currencies was constantly being challenged by growing debt and inflation.
What Happened: According to Shapiro, higher deficits are likely to lead to future tax increases, as there is no way to escape that matrix if the countries are not willing to cut their spending.
This pressure of paying taxes, along with high inflation, reduces the value of the domestic currency of a country, explains Shapiro.
It is evident from the 8.29% year-to-date decline in the U.S. Dollar Index value as the fiscal policies introduced by President Donald Trump‘s administration take shape.
Thus, Shapiro stated that “having more of your stored wealth in outside money vs inside money makes even more sense than ever before.”
“In more and more countries around the world, we are getting there faster and faster each day that goes by,” he adds by saying that “#Bitcoin is the ultimate outside money.”
While the value of Bitcoin is not derived from any other asset, except its own limited supply, it is mostly independent of monetary and fiscal policies around the world. This is the reason why it is also known as a decentralized currency.
See Also: Growth Vs. Value: Expert Views Collide On The Impact Of Trump’s ‘Big, Beautiful’ Bill
Disclosure: 82% of retail CFD accounts lose money
Why It Matters: The ongoing reciprocal tariff pause with U.S. trading partners and a 90-day truce with China have subsided the tariff concerns.
However, the new “One Big Beautiful Bill Act” is now expected to add $3.8 trillion to the mounting U.S. debt as per Congressional Budget Office estimates, while providing tax relief.
Shapiro, in his earlier commentary, pointed this out and said that the proposed bill will “explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.”
The tax bill has been advanced by the House Rules Committee in an 8-4 vote following a marathon 22-hour hearing. –
Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Thursday. The SPY was up 0.12% to $583.80, while the QQQ advanced 0.086% to $514.44, according to Benzinga Pro data.
On Friday, the futures of the S&P 500, Nasdaq 100 and Dow Jones indices were mixed in premarket.
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