US Debt Crisis Triggers Bitcoin Price Surge, Predicts $300,000 by 2029

The US government's debt crisis is being touted as the biggest catalyst for Bitcoin's price surge. According to Bernstein, the $40 trillion debt level crossed on August 19 has led to a significant increase in yields, making it harder for governments to cut spending.

Bernstein analysts predict that the US will opt for the quieter exit by letting the currency lose value instead of cutting spending. This, they believe, will boost demand for assets like Bitcoin and gold that cannot be printed by governments.

As a result, Bernstein predicts that Bitcoin could hit $150,000 by mid-2027 and $300,000 by 2029. If institutions move faster, the price target could reach $500,000 in 2029 and $1 million by 2033.

The recent surge in Bitcoin's price from around $60,000 to over $81,200 is seen as a response to the US Treasury's announcement of doubling long-dated bond buybacks. This move was interpreted as a promise of easier money, leading to a significant increase in short bets being wiped out.

Cautious voices remain, however, with CryptoQuant data showing long-term holders selling into the rally as Bitcoin neared $80,000. Nevertheless, US spot Bitcoin ETFs have posted their strongest week of inflows in 10 months.