Bitcoin News Update: Bitcoin's Function as a Safe Haven Returns Amid U.S. Debt Reaching $38 Trillion

The U.S. cryptocurrency sector is experiencing a significant transformation as renewed optimism sweeps through, driven by a mix of regulatory, economic, and political factors. Binance, the largest crypto exchange globally, is preparing to re-enter the U.S. market after President Donald Trump granted a pardon to its founder, Changpeng "CZ" Zhao. At the same time, growing alarm over the country's soaring $38 trillion national debt is sparking fresh interest in

as a safeguard against the weakening of the dollar.

Bitcoin has struggled to maintain momentum above $109,100, with blockchain analytics provider

cautioning that a fall below crucial support could send the price down to $97,500. The company pointed out that short-term holders (STHs)—those who acquired Bitcoin within the last 155 days—are currently at a loss, which could signal a wave of selling that often comes before a medium-term downturn. Meanwhile, the market is watching Binance’s possible U.S. return with measured hope. Trump’s pardon of Zhao, who was found guilty of money laundering in 2023, has reignited debates over regulatory impartiality and the influence of politics, according to . Binance, which was barred from the U.S. in 2023, now faces a complicated process to regain entry. Some industry figures, such as CoinRoutes CEO Ian Weisberger, believe Binance’s comeback could broaden access to deep liquidity and derivatives, while critics like Santa Clara University’s Seoyoung Kim warn that significant regulatory challenges with the SEC and CFTC still lie ahead.

The political fallout from the pardon has also sparked intense criticism. Senator Elizabeth Warren, a Democrat, accused the administration of undermining the justice system, referencing Binance’s financial connections to Trump’s family through a stablecoin project. Meanwhile, Zhao has voiced his belief in crypto’s importance to the U.S. economy, stating on Twitter that the industry will "generate significant wealth for the nation," as reported by

.

Amid ongoing regulatory ambiguity, the U.S. debt crisis is increasing the appeal of alternative investments. Treasury figures show the

has exceeded $38 trillion, with annual interest payments expected to hit $1.8 trillion by 2035. The Congressional Budget Office has warned that, without intervention, the debt-to-GDP ratio could reach 156% by 2055, worsening inflation and diminishing consumer purchasing power. This fiscal outlook has revived arguments for Bitcoin as a hedge. Supporters, including BlackRock’s Larry Fink, claim Bitcoin’s capped supply of 21 million coins makes it a strong defense against dollar depreciation. Past links between liquidity boosts and Bitcoin price surges—such as the 2020 rally to $60,000 following stimulus measures—reinforce this perspective, as highlighted by .

Nevertheless, critics remain skeptical. Financial analyst Peter Schiff and economist Nouriel Roubini argue that Bitcoin’s price swings and speculative character prevent it from being a true safe haven. The recent $700 million in crypto liquidations demonstrates the market’s vulnerability to volatility. Still, institutional interest is rising, with major players like T. Rowe Price and VanEck seeking approval for crypto ETFs, indicating a trend toward broader acceptance, as also noted by CoinEdition.

The intersection of Binance’s potential U.S. return, regulatory challenges, and the national debt dilemma underscores the changing role of cryptocurrencies in a fragmented financial system. Despite ongoing obstacles—from political disputes to technical issues—the convergence of these elements is fostering an environment ripe for innovation and investment. As the

administration promotes measures to reduce deficits and strengthen the dollar, the crypto industry remains vigilant, anticipating a future where digital assets become central to the transformation of global finance.