Tiger Securities Upgrades Bitcoin Outlook Amid Rate Hike Risks
Tiger Securities has upgraded its outlook on Bitcoin despite potential headwinds from Federal Reserve rate hikes. The firm maintains a buy rating on BTC, citing strong returns over the last three months, with InvestingPro data showing a Financial Health score of 'EXCELLENT'.
The current price of Bitcoin is $34.87, down 38% from its 52-week high of $55.96. Tiger Securities notes that two or three 25 basis point rate increases could weigh on BTC if they lift real yields and tighten liquidity.
The firm also highlights the impact of public debt, which stands near 100% of GDP. The Congressional Budget Office's February baseline projects fiscal year 2026 net interest spending at 3.3% of GDP, absorbing roughly 19% of federal revenues, before a primary deficit of 2.6% of GDP.
Tiger Securities believes that even under an optimistic artificial intelligence scenario, debt would continue rising. Real growth of 2.75% and GDP-price inflation of 2% would imply nominal growth near 4.8%, while with effective borrowing costs of 3.8% to 4.0% and a primary deficit of 2% to 3%, debt-to-GDP would still rise by roughly one to two percentage points annually.