Binance “US Bond issuance is expected to reach 31 trillion dollars… It could be a burden on Bitcoin”

Exponentially increasing us debt every year (Source: fiscaldata.gov)

Binance Research has forecast that this year's issuance of us treasuries will exceed $31 trillion. This is an all-time high level equivalent to 109% of us Gross Domestic Product (GDP) and 144% of broad money (M2), and is expected to have a significant impact on the market.

According to the report, such a large-scale issuance of treasuries could be negative for risk assets like Bitcoin. This is because the absorption of liquidity in the asset market and concerns about rising interest rates can dampen investment sentiment.

However, if the us government opts for debt monetization policies such as Quantitative easing (QE) to solve this debt problem, it was also mentioned that it could be favorable for the cryptocurrency market. It is interpreted that if the central bank directly purchases treasuries, liquidity will be released back into the market, which could stimulate an expansion of demand for digital assets.

Binance emphasized that it is time to closely observe future us government policy responses and changes in the macroeconomic environment, and urged investors to make prudent decisions.