Long-Term Bitcoin Outlook Positive Amid Rising US Debt and Interest Payments

Macro analyst Lyn Alden is optimistic about Bitcoin's long-term prospects due to the rising interest payments on the US national debt, which has surpassed $35 trillion.

In her latest newsletter, Alden highlights Bitcoin’s strong correlation with global liquidity and anticipates this trend will persist.

Alden’s five-year forecast for Bitcoin remains positive, though she advises managing portfolio volatility. She attributes her bullish outlook to the anticipated high deficits the US government will face in the coming years.

According to the Congressional Budget Office, the national debt could reach $55 trillion within a decade, adding over $20 trillion in new public debt.

The increase in interest payments on this debt is expected to enhance global liquidity, which Alden believes will benefit Bitcoin. She notes that these interest expenses are flowing into the private sector, stimulating parts of the economy and contributing to inflationary pressures.

For the 2024 fiscal year, the US Treasury Department projects $763 billion in interest payments, making it the second-largest government expenditure after Social Security.