ChainCatcher news, according to Jinshi reports, analysts from the Institute of International Finance (IIF) indicate that the incoming president plans to cut taxes without reducing spending on inequality, which will cause the U.S. national debt to rise from the current approximately 100% of GDP to over 135% in 10 years.Inflation may also rise as Trump stimulates spending by imposing tariffs on foreign-made goods, making imported goods more expensive. The U.S. national debt is already close to $36 trillion, and the Institute of International Finance warns that if Trump's tax cut plan results in greater losses for the U.S. Treasury than expected, the debt could exceed 150% of GDP.Additionally, the Institute of International Finance points out that U.S. farms, construction, and healthcare "heavily rely on immigrant workers," and targeting this group under Trump's leadership could "put additional upward pressure on prices."

ChainCatcher news, according to Caixin, JPMorgan stated that the election results have reduced the risk of intense debates surrounding the U.S. debt ceiling in the first half of 2025 and alleviated uncertainties regarding the evolution of the Treasury General Account (TGA). The debt ceiling has been suspended until January 1, 2025, after which the Treasury will begin to utilize extraordinary measures and its cash balance to meet its debt obligations.JPMorgan believes that assuming the Treasury's TGA forecast for the fourth quarter of 2024 is $700 billion, and with a slight increase in extraordinary measures, the Treasury is unlikely to exhaust its resources and face the risk of a technical default before July 2025.

ChainCatcher news, Tether CEO Paolo Ardoino stated that Tether is "doubling down" on communication and transparency.Ardoino also mentioned: "Compared to the United Arab Emirates, Australia, and Spain, Tether holds more treasury bills. Treasury bills are considered a low-risk investment. Tether has decentralized the decision-making power for selling U.S. debt, and we are looking for hundreds of millions of new U.S. bond buyers, because through us, we can provide these emerging markets access to the best currencies in the world, while in the process, we are purchasing a significant amount of U.S. debt."

ChainCatcher News, Bank of America warns that as national debt continues to rise, gold may become the ultimate safe-haven asset in the U.S. market. The bank points out that gold is more attractive than U.S. Treasury bonds, especially in light of potential debt crisis risks.Gold prices in 2024 continue to rise, nearing the historical high of $2,700, with expectations to surpass $3,000 in the future. Meanwhile, the economic plans of U.S. government candidates may further increase debt levels, which also encourages global central banks to increase their gold reserves.

ChainCatcher news, according to Bitcoin Magazine on the X platform, U.S. Senator Cynthia Lummis stated that her "Bitcoin Strategic Reserve" bill is "the only viable solution that can reduce the national debt of the United States by half by 2045."

ChainCatcher news, former House Speaker Paul Ryan urged Washington lawmakers to consider establishing a "robust and predictable regulatory framework for stablecoins" in the United States.In a recent op-ed in The Wall Street Journal, Paul Ryan argued that in the face of growing U.S. debt, one response lawmakers should consider is to embrace stablecoins, making this debt more attractive in international markets and reducing the likelihood of failed debt auctions. If other countries successfully enhance the influence of their currencies while selling off government bonds, the U.S. needs to find new ways to boost the attractiveness of the dollar. Dollar-backed stablecoins are one answer.

ChainCatcher news, according to Bitcoin.com, Bitcoin Magazine CEO and cryptocurrency advisor to the Trump campaign, David Bailey, revealed that Trump had asked whether Bitcoin could be used to address the U.S. national debt issue.During an X space on Sunday night, Bailey stated that when he first met Trump, Trump asked him if Bitcoin could do anything about the $35 trillion debt. However, Bailey replied that he had some ideas but was not prepared to discuss the topic during their first meeting.

ChainCatcher news, U.S. Treasury Secretary Yellen stated that the prospect of maintaining high interest rates in the long term makes it more difficult to control U.S. borrowing demands, highlighting the importance of focusing on increasing fiscal revenue in budget negotiations with Republican lawmakers. Yellen said, "We have raised our interest rate expectations, which indeed has an impact. This makes it more challenging to keep deficits and interest payments under control." She reiterated the importance of the inflation-adjusted interest payments relative to GDP as a ratio indicator. This ratio has increased over the past year, but the White House expects it to stabilize around 1.3% over the next decade. "I don't have a hard rule, but I don't want to see it above 2%," she said. This is her clearest comment on this indicator to date.

ChainCatcher news, according to a report by Reuters, market observers say that concerns over the rapid rise in U.S. government debt are part of the reason for the recent surge in gold and Bitcoin prices, although so far, the U.S. Treasury market remains relatively optimistic about the country's fiscal outlook.The U.S. fiscal year 2023 budget deficit has expanded to $1.7 trillion, and it is expected to reach $2.6 trillion by 2034. Meanwhile, U.S. public debt is projected to hit 106% of GDP by 2028, up from 97% in fiscal year 2023. Since the $5 trillion mark in 2007, the scale of U.S. debt has skyrocketed to $27 trillion.The growing U.S. government debt has drawn more attention, with interest payments taking up a larger share, sometimes even exceeding defense spending. This deteriorating trend has driven demand for Bitcoin and gold, which are often used as hedges against inflation and the declining purchasing power of the dollar.Brad Bechtel, global head of foreign exchange at Jefferies, stated that concerns over the U.S. debt cycle and the devaluation of fiat currency have driven the narrative for Bitcoin and gold, leading investors to allocate more to these assets. Lawrence H. White, an economics professor at George Mason University, believes that the interest in Bitcoin and gold also stems from heightened inflationary turmoil. More concerning is that, even in peacetime and with full employment, debt and deficits continue to rise, and the next recession could trigger even greater debt growth.In addition to hedging risks, the rise in Bitcoin prices is also influenced by the launch of new ETFs and the upcoming halving event. Gold reaching historical highs is attributed to expectations of interest rate cuts by central banks and the demand for diversification of foreign reserves. Nevertheless, the rapid deterioration of the U.S. fiscal situation remains a major concern for some investors. Market strategist Michael Hartnett pointed out that the recent highs in gold and tech stocks indicate that to prevent a debt crisis, the U.S. may have to adopt policies such as yield curve control.However, Nicholas Colas, co-founder of DataTrek Research, stated that several indicators in the Treasury market currently show that bonds have not yet reflected expectations of a deteriorating fiscal outlook. Investors still view the dollar as a reserve currency and U.S. Treasuries as relatively safe assets. If seeking large-scale risk-free assets, the U.S. Treasury market remains the preferred choice.

ChainCatcher news, according to Bloomberg, the U.S. debt ceiling agreement will raise the debt ceiling for two years while cutting and limiting certain government spending over the next two years.In addition, the debt ceiling will keep non-defense spending nearly flat over the two years, and there is no budget cap in the agreement beyond 2025. (Source link)

ChainCatcher News, U.S. Treasury Secretary Yellen stated in a letter to Congress members regarding the potential default timeline: "Based on the latest available data, we now estimate that if Congress has not raised or suspended the debt ceiling by June 5, the Treasury will not have sufficient resources to meet the government's obligations."Yellen noted that the Treasury will be able to disburse over $130 billion in scheduled payments in the first two days of June, including payments to veterans, Social Security, and Medicare beneficiaries. These payments will reduce the Treasury's resources to very low levels. (source link)

ChainCatcher news, according to Jin10 citing sources, U.S. President Biden and House Speaker McCarthy are close to reaching an agreement on the U.S. debt ceiling, with a difference of only $70 billion in discretionary spending. The source and another person familiar with the negotiations stated that the final agreement is likely to be a streamlined deal containing several key figures, rather than a lengthy document spanning hundreds of pages that would require lawmakers days to draft, read, and vote on. (source link)

ChainCatcher news, according to data from intotheblock, the correlation between Bitcoin and precious metals has increased recently.Intotheblock indicates that this phenomenon may be related to the macro focus shifting from interest rates to the banking crisis and the risk of default in the United States. Additionally, the recent rebound of the U.S. dollar index (DXY) may also be an important factor contributing to the simultaneous decline in the prices of Bitcoin and precious metals. (source link)