Have Americans had enough of Bitcoin?

The fact that American consumers are taking on less debt and that default rates are increasing could slow the transition from FIAT currencies to Bitcoin.

Markus Thielen, founder of 10x Research, claims that the declining borrowing by American consumers may cause risky assets such as Bitcoin are bought less frequently.

According to data from the US central bank, total lending increased by $8.9 billion in June, falling short of the earlier forecast of at least $10 billion. In May, the figure was still at $13.9 billion.

The value of revolving credit debt fell by $1.7 billion, the largest decline since early 2021. Revolving credit is credit that the borrower can use multiple times up to a certain limit.

In addition, there was a sharp increase in defaults. According to Thielen's analysis, this is a sign of deteriorating financial positions of private households. The percentage of overdue credit card payments stands at 10.93%, the highest level since early 2012.

With these numbers, consumers' willingness to take out credit seems depleted. This poses a barrier to investment in risky assets such as Bitcoin, according to Thielen. Other risks for Bitcoin and the crypto market in general are the uncertainty surrounding the U.S. election, the slowing U.S. economy and the flattening of AI hype.