U.S. fiscal deficit, biggest among major economies, bolsters BTC bull case

Deteriorating U.S. fiscal health could support a bullish outlook for Bitcoin, CoinDesk said in an analysis. The U.S. primary fiscal deficit, excluding interest costs, stands at 3.59% of GDP, the highest among major advanced economies. While rising Treasury yields are typically a negative for non-yielding assets such as BTC and gold, CoinDesk said demand for safe-haven assets could increase instead if yields rise on concerns about sovereign debt rather than economic growth. BTC has gained 23% this month, while gold is up 10%. It added that U.S. employment data due this week, and any resulting shift in expectations for a September Federal Reserve rate hike, could increase short-term volatility.