According to legendary trader Raoul Pal, Bitcoin (BTC) and the broader digital currency ecosystem may benefit from the gloomy macroeconomic landscape. Pal took to X to explain the factors he believes are the most crucial chart in the macro market that crypto traders should also consider.

Debt and Devaluation Encourage Crypto Adoption

Pal identified some shortcomings in the United States market on a macro scale, citing that the aging population now equates to low GDP growth. Consequently, this low GDP growth translates to high debt to service the aging population. The veteran trader identified this high debt and low GDP growth as areas the Federal government would need to address.

In Pal's opinion, the "Fed needs to create liquidity to service the debt," a trend that can be described as debasement. Failure to address the challenge would lead to the accumulation of more debt. It is worth noting that this market outlook could trigger the devaluation of the dollar.

On the other hand, this unfortunate situation (for the dollar) may become the propeller that cryptocurrencies need to gain mainstream adoption. As it stands, many people already see Bitcoin as a viable hedge against economic crises. A further plunge in the economic health status of the nation may push a larger number of people to seek refuge in the crypto sector.

Those who currently have crypto as an alternative investment option to traditional assets like bonds, stocks, or even gold may be protected against the potential devaluation of the dollar. CEO of Circle Jeremy Allaire and Larry Fink, CEO of Blackrock, consider Bitcoin a vital component of a diversified investment portfolio in today's complex geopolitical and economic landscape.

Opposition to Bitcoin's Role

High-profile individuals like Peter Schiff, a recognized Bitcoin skeptic, do not believe that crypto holds the capacity to serve as a hedge against devaluation and inflation. Schiff was recently featured in a live debate on YouTube sponsored by ZeroHedge, where he pointed out that Bitcoin as a digital currency was not functional, and its slow speed and high transaction costs are obstacles to its daily use. SkyBridge Capital's Anthony Scaramucci defended Bitcoin, stressing its fixed supply and the possibility of storing value for a long time.

Amidst these opposing arguments, BTC appears to be grabbing the attention of many investors, including traditional financial institutions. This attention stems from the revelation that some of the top banking giants in the US now have exposure to spot Bitcoin ETFs. Wells Fargo and JPMorgan Chase are among the firms that have disclosed their Bitcoin exposures.

At the time of writing, Bitcoin has inked a mild recovery, up 0.7% in 24 hours to $61,066.36. Prior to this uptick, Bitcoin traded as low as $60,456.59 overnight.