- It competes with gold and Treasury bonds
- But the traditional “hedge currencies,” the yen and Swiss franc, have fallen far behind
The risk of a technical default in the United States is gradually growing. If Republicans and Democrats do not agree on the debt limit, the country will be unable to repay its obligations.
And against this backdrop, the popularity of certain assets in the market has increased.
Bloomberg conducted a survey among 637 investors, both retail and institutional. They were all asked a few questions about what to invest in in the event of a U.S. default?
More than half of professional investors and 45.7% of retail investors chose gold. In second place are, oddly enough, U.S. Treasury bonds (apparently with room for the future), and in third place is BTC.
As the chart shows, it was chosen by 7.8% of professional investors and 15.1% of retail investors:
It’s interesting that BTC beats USD (which makes sense given the threat of devaluation in the face of default), yen (deflationary asset) and Swiss franc (probably the most stable currency).
With about 60% of those surveyed believe that default risk is higher now than in 2011. Back then, parties in Congress couldn’t agree on raising the national debt limit, either.
A large percentage of those surveyed also believe that bonds maturing in 2033-2035 would rise even in the event of a technical default.
Practice shows that holders of these securities do receive dividends, albeit late.
We reported earlier that Circle has changed the structure of USDC reserves. The company liquidated its entire portfolio of Treasury bonds with a maturity of more than one month.
The company has liquidated its entire portfolio of Treasury bonds with a maturity of more than one month.