Rising US Debt Could Drive Demand for BTC, ETH, and ZEC

Grayscale's chief research officer Zach Pandl believes that rising U.S. debt could boost the value of Bitcoin (BTC), Ethereum (ETH), and Zcash (ZEC). According to Pandl, increased government borrowing will put a strain on bonds and reduce confidence in fiat currencies.

Pandl pointed out that investors would be looking for an alternative means of storing value, which would favor cryptocurrencies. He noted that higher government debt did not have a notable impact on interest rates during the global financial crisis, but times have changed since then.

With both firms and individuals borrowing large amounts to fund artificial intelligence development, there is greater demand for financing. This increased borrowing comes alongside growing national debt, which has exceeded $40 trillion for the first time.