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'Buy Bitcoin': Scaramucci Shares Crucial Warning Ahead of US Debt Crisis

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Wed, 3/04/2024 - 9:37
'Buy Bitcoin': Scaramucci Shares Crucial Warning Ahead of US Debt Crisis
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Legendary investor Anthony Scaramucci has once again urged people to buy Bitcoin amid U.S. federal government debt surge projections. “They won’t stop,” he added.  

In his recent post on the X platform, the BTC advocate reacted to the latest projections from the Congressional Budget Office indicating that U.S. federal debt will rise to 116% by 2034. This trajectory surpasses the debt levels observed during World War II, but the actual outlook may be even more concerning.

One verdict: Debt danger ahead

Bloomberg Economics ran simulations, showing in 88% of cases that the debt-to-GDP ratio is on an unsustainable path, with continual increases over the next decade.

Source: Bloomberg

According to Bloomberg Economics' forecast model, based on market pricing for future interest rates and bond maturity data, U.S. debt could reach 123% of GDP by 2034. At this level, servicing costs would amount to nearly 5.4% of GDP, exceeding spending on national defense in 2023 and rivaling the entire Social Security budget.

Bitcoin flash crash

On Tuesday, the price of Bitcoin experienced a notable decline, reportedly influenced by automated trading protocols in Asia reacting to Bitcoin ETF data. According to a Bloomberg report, these bots utilize scraped ETF data to place orders, potentially exerting a significant impact on the market. 

Source: CoinMarketCap

This theory is bolstered by Bitcoin's robust performance earlier in March during periods of strong inflows. However, analyst Eric Balchunas has downplayed the significance of Bitcoin ETFs on the cryptocurrency's price, suggesting that larger market forces are at play.

"Wealth-generating machine"

Scaramucci has emerged as a prominent supporter of Bitcoin, regularly highlighting its potential as a game-changing asset. He has expressed optimism about Bitcoin ETFs, likened Bitcoin to gold as a store of value and speculated about traditional investors like Warren Buffett acknowledging Bitcoin's value. 

Related

Recently, Scaramucci has likened Bitcoin to the "Berkshire Hathaway of the 21st century." He characterized Bitcoin as a "compounding, wealth-generating machine" for investors, highlighting that it is still in its nascent stages, similar to Berkshire Hathaway in its early days.

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