US Debt Dynamics Could Fuel Bitcoin Rally, Says Fundstrat’s Farrell

Sean Farrell of Fundstrat argues that mounting pressure in the Treasury market, driven by debt above 120 % of GDP and a 6-7 % budget deficit, may force the US Treasury to favour short-term bills over long bonds. Such a shift would inject fresh liquidity into the financial system and gradually erode the dollar’s purchasing power, benefiting scarce assets like bitcoin.

The strategist points to bitcoin’s recent break above its 50-week moving average as a structural change that could attract trend-following capital. While he still sees $100,000 as reachable by the end of 2026, he has walked back his earlier $115,000 target and no longer expects it even in two years.

Farrell allows for a possible 10 % pullback but believes buyers would step in quickly. He is now watching the Treasury’s next quarterly refunding announcement for clues on future bond supply.

Based on information from https://cryptonews.net