Bitwise Analysts Revealed Bitcoin's (BTC) Fair Value!

Bitcoin (BTC), while exhibiting highly volatile movements in recent days, analysts suggest that Bitcoin could be an attractive hedge against potential defaults in the face of increasing debt risks and record-high financial debt-GDP levels globally.

At this point, Bitwise analysts claimed in a recent report that Bitcoin is a hedge for their portfolios against the rapidly increasing debts of major global economies.

Bitwise analysts claimed that in an environment where Bitcoin is seen as 'insurance' against increasing debts and default risks, the price could exceed $200,000.

As the debt-to-GDP levels reach new record highs, the default risks of states are increasing globally.

The financial condition of France and England is becoming particularly worrisome for bond investors.

Additionally, we believe that the United States will reach its $36 trillion borrowing limit and its ability to fulfill government financial obligations will decrease.

Historically, such moments of uncertainty have had mixed effects on the price of Bitcoin, but we expect increased demand for BTC in the face of growing concerns."

Analysts stating that Bitcoin's fair value is related to the default probabilities of countries, pointed out that if G20 countries' sovereign bonds (worth $69.1 trillion) were to face a weighted default probability of 6.2%, Bitcoin's theoretical fair value could be $219,000.

Analysts said that gold also provides good protection against dominant risks, but it offers lower protection than Bitcoin due to its lower scarcity and dependence on traditional centralized storage institutions such as banks.

Analysts have pointed out that Bitcoin has risks in terms of its insurance function, including its volatility, which makes it susceptible to sharp price drops during times of uncertainty, making it a risk for investors seeking stability during crisis times.