In-depth analysis of the US debt crisis: Funds flee under the expectation of the Fed's interest rate cut, the bond market plummets, and Bitcoin may become a new favorite?

In the wave of global financial markets, a crisis about US Treasury bonds is gradually escalating. Recently, the Fed's expectations for interest rate cuts have increased, but this policy adjustment has not brought the expected stability to the bond market, but has triggered a large-scale flight of funds. US government bonds began to plummet, not only falling below the 40-year upward trend line, but also falling to the 2013 level after experiencing one of the most vicious bear markets since the 1980s.

For investors, US Treasury bonds are usually an important part of their investment portfolio, accounting for as much as 40%. Therefore, the sharp decline in the bond market has undoubtedly brought huge losses to investors. This crisis not only triggered panic in the market, but also made people begin to re-examine the stability and security of traditional investment tools.

At the same time, the issuance of US Treasury bonds in 2024 is expected to reach a staggering $1.9 trillion, which exceeds the level during the 2008 financial crisis. In the dilemma of "expanding the balance sheet while shrinking the balance sheet", the US government's debt scale continues to expand, while fiscal revenue is difficult to keep up with the pace of expenditure. This unbalanced fiscal situation has caused more concerns about the future of the US economy.

However, in this US debt crisis, digital currencies such as Bitcoin may become a new investment hotspot. With the turmoil in traditional financial markets, investors are looking for safer investment channels. Bitcoin has seen a significant increase in price and value in recent years due to its decentralized, safe and reliable characteristics. Some analysts predict that Bitcoin prices may rise further under the expectation of a rate cut by the Federal Reserve.

Although Bitcoin prices are volatile and risky, investors are paying more attention to it against the backdrop of the intensifying US debt crisis. In particular, if the US dollar really faces a major reset, digital currencies such as Bitcoin may become one of the new global reserve currencies, further driving up its price.

Compared with other currencies, Bitcoin has stronger global and decentralized characteristics, is not affected by the policies of a single country or region, and is not controlled by traditional financial institutions. This makes Bitcoin more resistant to risks in the context of global economic uncertainty and financial crises.