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What the numbers say: A recent Bloomberg survey conducted from May 8 to 12 with 637 respondents;has shown that;the leading cryptocurrency, Bitcoin (BTC), is likely to be one of the top three assets most preferred by retail investors if the U.S. hits the debt ceiling. In the survey, gold, U.S. treasuries, and Bitcoin sat in the first three places, respectively. 11.3% of retail investors said they would buy Bitcoin if the U.S. defaults on debt. Bitcoin was followed by the U.S. dollar, the "Something else" option, the Swiss franc, and the Japanese yen on the ranking. This means that Bitcoin would be a more popular choice for retail investors than the U.S. dollar, the Japanese yen, or the Swiss franc in case of a U.S. debt default.
Details:;In the survey, Bitcoin;has also become;the third most popular choice for professional investors after gold and U.S. treasuries, with the same rate of 7.8% as the U.S. dollar. On the ranking built based on the answers of professional investors, the leading cryptocurrency and the U.S. dollar were respectively followed by the Japanese yen, the Swiss franc, and the "Something else" option.
Relevance:;The survey came amid rising concerns around a potential U.S. debt default. Earlier in May, Treasury Secretary;Janet Yellen stated;that the U.S. could run out of cash by June 1, defaulting on debt, if the debt limit is not suspended or raised. President Joe Biden also warned that the whole world would run into trouble if the U.S. hits the debt ceiling.
What it means:;The debt ceiling refers to the maximum amount of money the U.S. government is authorized to borrow as federal debt to meet its legal obligations, including paying military salaries, tax refunds, and Social Security and Medicare benefits.
Brands that should care:;If the survey results demonstrate their accuracy in case of a debt default, the centralized crypto exchanges, such as Binance, Coinbase, OKX, and Kraken, are expected to see a massive Bitcoin inflow due to the increased investments in the leading cryptocurrency.