- More investors backed bitcoin than the dollar as the preferred investment during a default, a Bloomberg survey found.
- But gold was the top choice, due to its history as a safe haven asset and recent price gains.
- Treasurys were the second choice, as most expect the US would still meet its debt obligations eventually.
In the case of a US default, retail investors favor bitcoin over the dollar, underlining the token’s appeal as a safe haven asset.
That’s according to Bloomberg’s most recent Markets Live Pulse survey, which asked investors what they would buy if the US hit its debt ceiling.
To be sure, gold led the list of responses, with 51.7% of professional investors and 45.7% of retail investors preferring bullion.
In second place came Treasurys, drawing 14% of professionals and 15.1% of retail investors. Bitcoin followed with 7.8% and 11.3%, respectively — versus the dollar’s 7.8% and 10.2%.
A default could arrive as soon as June 1, if lawmakers fail to lift the $31.4 trillion debt ceiling before the government runs out of money.
Bloomberg’s MLIV survey also found that 41% expect greenback would weaken in a default, which could also accelerate de-dollarization trends.
Meanwhile, bitcoin rallied in an earlier period of stress this year, namely the banking crisis sparked by the collapse of Silicon Valley Bank.
