US Dollar Debt Crisis Could Drive Bitcoin Market Cap to Unprecedented Heights

Stock News14:13

According to Woofun AI reports, Strive CEO Matt Cole argued on Bloomberg that the core variable driving Bitcoin's market cap to unlimited heights is not its scarcity, but the worsening US dollar debt crisis. This perspective shifts Bitcoin's value reassessment logic from the supply side to the collapse risk of fiat currency credit.

Since January, the total market cap of digital assets has recovered to $3 trillion, and Strive, as an active Bitcoin custody company, has continued executing buy strategies during this rebound. Woofun AI compiled data shows Cole expects Bitcoin's compound annual growth rate to reach 50% by 2030, noting that this forecast, based on the judgment announced last month that the bear market had ended, actually remains conservative.

If the Federal Reserve and the US Treasury completely exit the bond market, the 10-year US Treasury yield could break through 10%. Currently, the stability of long-term rates is attributed to the intervention of US Treasury Secretary Scott Bessent, but this only delays the crisis, as both parties in Washington show no intention of cutting spending.

In contrast, Strive's issued SATA.US preferred shares have outperformed Bitcoin by more than 100% in 2026, even when the latter remained flat. Cole refuted the narrative that the Bitcoin custody company model is in decline, pointing out that undisciplined firms suffer during bear markets, while buyers with clear strategies keep accumulating when Wall Street bond investors return.

Essentially, this represents a long-term bet on the deterioration of US fiscal conditions, with returns depending on the evolution path of the bond market and the dollar in the coming years.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment