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

Bitget App

Trade smarter

Bitget

News

Markets

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

Bitget-RWA2025/10/27 15:20

By:Bitget-RWA

- Binance seeks U.S. reentry after Trump pardons founder CZ, reigniting debates over regulatory fairness and political influence. - Bitcoin faces $109,100 resistance amid $38 trillion U.S. debt concerns, with short-term holders at risk of capitulation below key support levels. - Critics warn of SEC/CFTC hurdles for Binance's return, while proponents highlight Bitcoin's fixed supply as a hedge against dollar devaluation. - Rising institutional crypto adoption and ETF filings signal growing mainstream accept

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

Bitcoin

as a safeguard against the weakening of the dollar.

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

Glassnode

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

MarketWatch

. 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.

Bitcoin News Update: Bitcoin's Function as a Safe Haven Returns Amid U.S. Debt Reaching $38 Trillion image 0

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

Yahoo Finance

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

U.S. national debt

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

CoinEdition

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

Trump

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.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Tether Gold (XAU₮) surpassed $2.2B market value in October 2025, backed by 7.66 metric tons of Swiss-stored physical gold. - The tokenization surge reflects growing RWA adoption, with gold prices hitting $4,125/ounce amid inflation and geopolitical risks. - Tether's strategy includes launching USAT stablecoin and expanding crypto integration via partnerships like Rumble's Bitcoin tipping feature. - XAU₮'s market cap tripled since January 2025, driven by institutional/retail demand and creator economy app

Bitget-RWA•2025/10/28 15:38

Global instability fuels a $2 billion surge in tokenized gold

DeFi Closes Financial Divides with the Rise of Instant Cryptocurrency Lending

- Uphold partners with Exactly Protocol to launch instant crypto loans via Visa cards, enabling users to borrow against XRP, ETH, and stablecoins without traditional banking intermediaries. - The service, expanding to Latin America in December 2025, aims to democratize financial access by removing credit checks and offering 24/7 on-chain lending, addressing regional currency instability. - DeFi growth is supported by projects like Mutuum Finance (raising $17.8M) and security innovations such as Credifence’

Bitget-RWA•2025/10/28 15:38

DeFi Closes Financial Divides with the Rise of Instant Cryptocurrency Lending

AI’s Rapid Economic Growth Ignites Discussion: Genuine Innovation or Market Hype?

- U.S. prioritizes AI as economic stimulus pillar through regulation, corporate strategies, and $1B AMD supercomputer partnerships. - Trump's CFTC nominee Selig aims to unify crypto regulation, addressing gaps critical for AI-driven fintech markets. - AI sector shows divergent trajectories: BigBear.ai faces budget cuts while C3.ai struggles post-CEO exit. - Palantir's 300% 2025 stock surge highlights defense AI demand, but analysts warn of overvaluation risks amid security concerns. - Global AI spending pr

Bitget-RWA•2025/10/28 15:38

AI’s Rapid Economic Growth Ignites Discussion: Genuine Innovation or Market Hype?

Ethereum News Today: The Institutional Phase of Ethereum: SharpLink Allocates $200M in ETH to Access DeFi Returns

- SharpLink Gaming deploys $200M ETH on Linea to boost DeFi yields and institutional blockchain participation via staking/restaking partnerships. - Collaboration with Anchorage Digital and EigenCloud emphasizes security, regulatory compliance, and Ethereum-based AI/AVS infrastructure expansion. - Strategic move positions ETH as a productivity asset, leveraging Layer 2 scalability to diversify yield streams while mitigating smart contract risks. - Initiative highlights Ethereum's institutional adoption shif

Bitget-RWA•2025/10/28 15:22