Bitcoin Trumps Dollar, Swiss Franc, Yen As Retail Investors' Safe Haven Choice If US Hits Debt Ceiling: Survey

Although gold remains the top choice as a safe haven in case the U.S. hits the debt ceiling and Treasuries take the second spot, Bitcoin BTC/USD seems to have snatched the third spot from popular assets like the U.S. dollar, Swiss franc or the Japanese yen, a survey reportedly shows.

More retail investors have voted for Bitcoin compared to the dollar as a safe haven choice but professional investors appear to be equally divided in their opinion on the assets, according to Bloomberg's latest Markets Live Pulse survey.

Also Read: How to Buy Bitcoin (BTC)

Although Bitcoin has fallen close to 10% in the last month, the cryptocurrency is still up over 64% since the beginning of the year. The asset's selection as a safe haven could be a result of investor pessimism as Washington's ability to sort out political stand-offs on the debt ceiling crisis seems to have dipped with the impasse entering the third week of May.

It is noteworthy that June 1^st is the X-date when the Treasury Department is expected to run out of cash if the debt limit is either not raised or suspended.

Interestingly, about 60% of the survey respondents believe the risks are bigger this time as compared to 2011 which witnessed the worst debt-limit crisis of the past, the report said.

In the latest development, President Joe Biden said he expects to meet with congressional leaders on Tuesday for talks on the debt ceiling crisis. The President was earlier set to meet with House Speaker Kevin McCarthy and senior Congressional leaders on Friday but the meeting was postponed.

Gold: More than half of finance professionals surveyed said gold is what they would buy if the U.S. does not honor its obligations, according to the report. However, relying on the asset as a safe haven in current times won't be cheap as the yellow metal is currently trading over the $2,000 per ounce mark compared to the lows of about $1,635 per ounce seen in November last year.

The SPDR Gold Trust GLD closed 0.17% lower on Friday while the iShares Gold Trust IAU closed 0.21% lower.

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