Bitcoin stays calm as the US debt sinks to historic lows

As the coronavirus pandemic continues, the consequences for the world economy continuously grow larger and larger. The most recent example of this is the US national debt. The debt reached an entirely new low as it crossed $24 trillion.

US debt hits a new high as it exceeds $24 trillion

The US President, Donald Trump, contributed to the increase by adding $4 trillion in only four years. As reported by Trading Economics, the current debt sits at $24.018 trillion on April 9th. To put this in perspective, this amount is equal to $72,888 per each US Citizen. Meanwhile, it can also be measured as $193,805 per each US taxpayer.

The size of the country’s national debt in nearly incomprehensible. The new readings come only a few weeks after the US Fed started printing money for the momentary relief.

As a result, the Federal Reserve managed to provide $6 trillion of liquidity. The move allowed it to become a leader in responding to the financial impact caused by the virus. This was an important move, seen as some forecasts expect the US unemployment rate to hit 13% due to the pandemic. But even so, the $6 trillion figure in itself is the same as the entire US GDP from 1990.

Bitcoin recovers as the US economy continues to fall

Another interesting thing to note is Bitcoin’s response to the US’ deteriorating economy. The world’s first and largest cryptocurrency responded by doing nothing. It seems to have ignored the storm, without needing help from the government. In fact, despite its 50% crash nearly a month ago, the coin currently trades 2.1% higher than at the start of the year.

The stock market, on the other hand, still suffers great losses, despite recent attempts at recovery. The S&P 500 alone is down by nearly 15% on a YTD chart. WTI oil crashed even more than Bitcoin did in March, currently being down by 58%.

JPMorgan’s assessment of the coronavirus’ impact says that the virus could cost the world of as much as $5.5 trillion.

Meanwhile, Trump continues to increase the US’ already alarmingly high debt. So much so, in fact, that even people like the gold bug, Peter Schiff, started showing unity with the crypto community.

Schiff stated that Trump will increase debt more in his 4 years than Bush in his 8.

The national debt just passed $24 trillion, up $4 trillion since @realDonaldTrump took office. He will add more debt in 4 years than Bush did in 8. If reelected he will add more debt in 8 years than Bush & Obama did in 16. Instead of draining the swamp, he is draining the nation.

— Peter Schiff (@PeterSchiff) April 8, 2020

Many are already turning to gold and cryptocurrency, while the crypto sector receives nu,erous fresh backers.