Bloomberg Analyst: US Government Has No Option Except Currency Debasement

It has been just revealed the fact that the US government has no other option except currency debasement. Check out the latest reports about the matter below.

According to Jamie Coutts, a Bloomberg crypto market analyst, Bitcoin (BTC) will benefit greatly from the inevitable return to currency debasement by the US government.

Coutts shared on social media platform X that by allocating 1% of a traditional 60/40 (stocks and bonds) portfolio to BTC between 2015 and 2022, investors would have seen significant gains.

He posed the question, “What happens when you re-allocate 1% from bonds to BTC to 60/40 portfolio?”

However, even with optimized returns from a BTC allocation, Coutts says the average 60/40 portfolio was not enough to outrun the effects of currency debasement during those years.

According to a crypto analyst, with more investors considering currency debasement, hard assets like Bitcoin will benefit, while government bonds will lose value.

In the current fiat central bank construct, nominal returns are a useless measure. Investors need to factor in the monetary debasement factor when determining position sizing.

Given the US government’s finances, debasement is the only option.

Therefore, bonds are likely to be the biggest loser in the future if portfolio allocators start considering Bitcoin’s inclusion in diversified portfolios.

Earlier this month, Coutts reported that one of Bloomberg’s proprietary trading indicators signaled a bullish trend for Bitcoin.

At time of writing, BTC is trading for $26,926.

Crypto analyst Jason Pizzino has made a prediction about when Bitcoin (BTC) could reach a new all-time high (ATH).

In a recent strategy session, Pizzino informed his 290,000 YouTube subscribers that BTC may enter a bull market cycle as early as late next year.

This would push the king crypto beyond the current ATH of about $69,000. Check out our previous article in order to learn more details.