Opinion: In the event of a US debt default, Bitcoin could rise by almost 70%

Standard Chartered analyst Geoff Kendrick suggests that if the United States defaults on its debt, Bitcoin could experience a significant surge of approximately $20,000, equating to a nearly 70% increase from its current price.

Despite starting the year below $17,000 and currently hovering around $30,000, Bitcoin remains far from its peak value of nearly $69,000 in November 2021. Kendrick believes that even if other cryptocurrencies do not perform well, Bitcoin would still thrive. He suggests that a long position in Bitcoin and a short position in Ethereum would be an optimal strategy.

Kendrick also stated that he expects Bitcoin to reach $100,000 by the end of 2024, signaling the end of the “crypto winter.” He attributes Bitcoin’s success to its reputation as a trusted safe haven, a perceived store of value, and a medium for remittances.

While the debt ceiling crisis continues to escalate, with House Republicans recently passing legislation to raise the debt ceiling, the possibility of a U.S. default remains a serious concern. Treasury Secretary Janet Yellen warned of the catastrophic economic and financial consequences of a debt default. However, the prevailing sentiment is that a default is unlikely.

Despite its critics, Bitcoin enthusiasts remain optimistic. ARK Invest CEO Cathie Wood predicts that Bitcoin will reach around $670,000 in five years and potentially exceed $1 million by 2030 due to increased adoption and insurance policies against unstable fiscal and policy regimes.

Nevertheless, notable figures like billionaire investor Mark Mobius and Berkshire Hathaway CEO Warren Buffett maintain their skepticism towards Bitcoin, with Buffett describing it as a gambling token lacking intrinsic value.