Gushiken Yona
Republican candidate and former President Donald Trump, in a move that has sent ripples through both the political and financial spheres, has suggested a bold and unconventional strategy to tackle the United States soaring $35 trillion national debt: paying it off with Bitcoin.
In a recent interview with FOX Business Maria Bartiromo, Trump said he should have embraced crypto technology to maintain American leadership in the global arena. “Who knows, maybe we’ll pay off our $35 trillion dollars and hand ‘em a little crypto check. We’ll hand ‘em a little Bitcoin, and wipe out our $35 trillion dollars,” Trump noted.
Trumps statement came amid troubling economic indicators, including a rise in the unemployment rate to 4.3% and a sharp slowdown in job growth. These developments triggered recession fears, sending shockwaves through financial markets and causing a substantial sell-off in both the stock and bond markets.
Meanwhile, job growth plummeted to a mere 114,000 positions added, far below forecasts and the weakest pace since January 2021. The disappointing labor market data activated the Sahm Rule, an economic indicator often used to signal the onset of a recession.
The rule states that if the three-month average unemployment rate rises by 0.5 percentage points from its low point over the previous 12 months, a recession is likely underway. Wall Street reacted violently to the news, with major indices plunging and wiping out trillions of dollars in market value.
The sell-off was the most severe since the early days of the COVID-19 pandemic in March 2020, as investors grappled with the prospect of a global economic downturn. The cryptocurrency market also experienced a sharp downturn, mirroring the broader economic turmoil triggered by disappointing jobs data.
Bitcoin, the world’s largest cryptocurrency, plunged nearly 4% in a matter of hours, erasing earlier gains and falling back below the $63,000 mark. The king of crypto had briefly climbed above $65,000 during early U.S. trading, but the rally proved short-lived as investors opted for safer havens amid growing recession fears.
The broader cryptocurrency market suffered even more significant losses, with altcoins like Ethereum, Solana, Uniswap, and Chainlink shedding between 4% and 5% of their value. This came at the heels of Senator Cynthia Lummis introducing a groundbreaking piece of legislation known as the Bitcoin Reserve Bill.
This bill proposes that the United States establish a national reserve of Bitcoin, positioning the cryptocurrency as a strategic financial asset alongside gold and foreign currency reserves. Lummis, a well-known advocate for digital currencies, argues that incorporating Bitcoin into the national reserve could bolster economic stability and provide a hedge against inflation, leveraging the growing influence and acceptance of cryptocurrencies on the global stage.
Read More
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- Trump Collects $25M at Bitcoin Conference 2024
- Trump Crypto Strategy Pays Off with Over $4 Million in Cryptocurrency Donations
Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
