Golden Finance reported that the Bank for International Settlements (BIS) warned indebted countries on Sunday that market confidence could be lost suddenly, confirming long-standing concerns about the cryptocurrency market. According to some cryptocurrency experts, both Bitcoin and gold foreshadow a fiscal crisis in the United States and other developed countries. This year, the so-called zero-yield assets have risen by 48% and 13%, respectively, reportedly because of safe-haven demand. Although cryptocurrency supporters believe that BTC is the opposite of the downturn in fiat currencies, the cryptocurrency tends to fall along with other risky assets in times of stress. The consensus in the cryptocurrency market is that increased debt concerns will force the Federal Reserve and other central banks to cut interest rates, thereby stimulating more investors to flow into alternative assets such as Bitcoin. The Chicago Mercantile Exchange's FedWatch tool shows that traders expect the Federal Reserve to cut interest rates twice this year, each by 25 basis points. The Bank for International Settlements added that fiscal consolidation will eventually reduce the need to maintain high interest rates. "For fiscal policy, fiscal consolidation is an absolute priority. In the short term, this will help ease inflationary pressures and reduce the need to maintain high interest rates, which in turn will help maintain financial stability."
