- Analysts predict the U.S. “debt spiral” may push up interest in crypto assets such as XRP to rival gold.
- The U.S. debt portfolio sits at an all-time high of $33 trillion, which has the whole system worried.
- U.S. institutional investors are looking into crypto assets such as XRP, Bitcoin, and Ethereum.
Analysts in the United States have predicted that cryptocurrency tokens, such as XRP, may see renewed institutional and individual interest, Forbes reported. These predictions come in the wake of the U.S. dollar collapse.
In particular, the report captured that analysts at investment firm Jefferies Group have warned the U.S. dollar may crash further as the country battles with its debt. The U.S. recently peaked its all-time debt portfolio at $33 trillion, which has the whole system worried.
According to the report, the quantitative tightening by the Fed and hiking interest rates have triggered fears of a “debt spiral” for the currency. Furthermore, the report mentioned that the economic situation could also push up the price of crypto assets to rival gold.
As a result, the analysts predicted the government may decide to start printing the dollar again to salvage the situation but potentially crash the currency further. The report stated that investors could move to crypto assets to prevent exposure to the crisis.
The report further revealed that XRP, Bitcoin, and Ethereum have seen a sharp institutional interest led by the world’s largest asset manager, BlackRock. One of such action is the influx of traditional financial firms in filing for Bitcoin ETF in the U.S.
However, regulatory scrutiny and the SEC’s extended delay in filings have affected the pace of the developments. Nonetheless, crypto experts noted that institutional interest in the market could help boost crypto market recovery.
Following the July decision and the recent SEC appeal dismissal, XRP, a digital token used by blockchain payment company Ripple Labs, has seen increased interest. The decisions are significant, considering that they provided legal clarity on XRP securities status. However, many within the XRP community have expressed concerns about Ripple Labs hindering the token’s utility.
Data from CoinMarketCap shows that the token declined alongside other major cryptocurrencies. At the time of press, XRP is changing hands at $0.5097, a 2.29% drop in the past 24 hours.
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