Citi Research stated that Bitcoin and Ethereum could be negatively affected due to the US’s next economic moves.
Citigroup, an establishment of the famous Rockefeller family, draws attention with its moves towards the US economy. Citi Research, part of Citigroup, evaluated risky assets in the light of the latest developments in the USA. Citi Research’s strategists think that BTC and ETH, in particular, will provide negative returns in possible scenarios.
Strategists predict that the consequences of debt default risk in the US will reflect negatively on BTC and ETH.
Citi Research Uneasy for Bitcoin and Ethereum
Citi Research, a subsidiary of Citigroup, claimed that the US treasury is facing more than $1 trillion in liabilities and will print US dollars to resolve it. Strategists stated that this supply boom could drain liquidity in the banking sector and trigger a recession in the short term.
Based on this prediction, strategists stated that the crypto market is not immune to US debt default and printing US dollars against negative developments. As a result, Citi Research said that the risk of US government default is not a positive signal for decentralized digital assets.
On the other hand, Citi Index senior market analyst Fiona Cincotta suggested that the factor that could pave the way for the rise in Bitcoin would be the Fed’s dove policy.
Citigroup thinks that Bitcoin is well fed by the banking problem in the US, however, the now anticipated scenario is new to crypto.
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