{"id":6047,"date":"2025-07-25T05:00:28","date_gmt":"2025-07-25T05:00:28","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/higher-bitcoin-price-now-critical-for-us-fiscal-stability-expert-warns\/"},"modified":"2025-07-25T05:00:28","modified_gmt":"2025-07-25T05:00:28","slug":"higher-bitcoin-price-now-critical-for-us-fiscal-stability-expert-warns","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/higher-bitcoin-price-now-critical-for-us-fiscal-stability-expert-warns\/","title":{"rendered":"Higher Bitcoin Price Now Critical For US Fiscal Stability, Expert Warns"},"content":{"rendered":"

Jack Mallers, founder of Strike, argued in a video shared on X that a structurally higher Bitcoin price is emerging as a necessary component of US fiscal management, linking the growth of stablecoins to demand for US government debt. Framing the newly introduced GENIUS Act stablecoin legislation as \u201ca seminal moment for digital assets and global dollar dominance,\u201d Mallers said<\/a> that while the bill \u201chas nothing to do with Bitcoin directly,\u201d it is indirectly significant because stablecoin expansion and Bitcoin appreciation are, in his view, intertwined.<\/p>\n

Bitcoin And Gold Must Rise To Avert US Fiscal Crisis<\/h2>\n

Displaying a chart of Tether\u2019s market capitalization alongside Bitcoin\u2019s price, Mallers told viewers: \u201cIn the green, what you\u2019re looking at is Tether, Market Cap. And in the orange, what you\u2019re looking at is Bitcoin\u2026 The currency pair that does the most volume against this asset class is USDT, is Tether\u2026 If you want stablecoins to grow, Bitcoin grows.\u201d He then connected that relationship to federal financing: stablecoin issuers, especially Tether, hold large amounts of US Treasuries; therefore, a larger stablecoin float would translate into incremental structural demand for US debt.<\/p>\n

Mallers described the United States as fiscally \u201ctrapped,\u201d asserting: \u201cWe know that the US cannot raise rates and they cannot cut spending. So we are trapped. The next logical step is we then need to devalue the dollar. It\u2019s the only way out.\u201d The policy question, he continued, is what assets the dollar should be allowed to depreciate against. \u201cDo not debase the dollar against housing\u2026 Don\u2019t debase the dollar against eggs\u2026 My recommendation, debase it against Bitcoin and gold.\u201d<\/p>\n

Projecting a scenario in which Bitcoin reaches $500,000\u2014\u201cThat\u2019s 5x from here\u201d\u2014Mallers claimed such a move would force stablecoin capitalization to \u201c5x,\u201d producing \u201cfive times the amount of demand for US debt\u201d at a moment when, he said, traditional foreign and domestic buyers are fatigued: \u201cChina doesn\u2019t want your debt\u2026 Hedge funds don\u2019t want your debt. Who\u2019s the buyer of last resort? The Fed.\u201d<\/p>\n

He likened the prospective alignment of Treasury financing needs, Federal Reserve balance-sheet expansion, and stablecoin reserve composition to a previous historical episode: \u201cThe last time the Fed and the US government got married\u2026 was to help finance around the world wars. And the Fed\u2019s balance sheet grew 10 times\u2026 largely in\u2026 T-bills, the things that stablecoins buy.\u201d<\/p>\n

With US debt-to-GDP \u201cat 130%,\u201d Mallers argued, reduction in real terms requires monetary debasement channeled into politically acceptable asset inflation. He extended the narrative into politics, highlighting that \u201cThe president and his family just bought $2 billion worth of Bitcoin\u201d and policy moves such as opening \u201cUS retirement market to crypto investments.\u201d<\/p>\n

According to Mallers, positioning Bitcoin and gold inside retirement accounts will allow policymakers to \u201cdebase the dollar and get reelected,\u201d because Bitcoin holders would not resist the erosion of purchasing power: \u201cDebase the dollar all you want\u2026 I don\u2019t care because I own Bitcoin.\u201d<\/p>\n

He concluded by restating the mechanism he sees emerging from the bill: \u201cStablecoins are the new way to finance the government, but they grow as Bitcoin grows. One way to grow stablecoins is to grow Bitcoin\u2026 One way to solve the Fed and the Treasury\u2019s problem of getting remarried is to grow Bitcoin. It could not be more obvious.\u201d<\/p>\n

At press time, BTC traded at $118,055.<\/p>\n

\"Bitcoin<\/p>\n","protected":false},"excerpt":{"rendered":"

Jack Mallers, founder of Strike, argued in a video shared on X that a structurally higher Bitcoin price is emerging as a necessary component of US fiscal management, linking the growth of stablecoins to demand for US government debt. Framing the newly introduced GENIUS Act stablecoin legislation as \u201ca seminal moment for digital assets and…<\/p>\n","protected":false},"author":1,"featured_media":6048,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[22,28,29,32,33,34],"class_list":["post-6047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btc-price"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/6047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=6047"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/6047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/6048"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=6047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=6047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=6047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}