US debt tops $40T stoking debate on what it means for Bitcoin
US federal debt has topped $40 trillion, reigniting debate over whether rising borrowing can boost Bitcoin’s appeal as a scarce, non-sovereign asset. Higher debt service costs are also straining the budget, with interest expense now above Medicare and second only to Social Security. At the same time, the Treasury has moved to stabilize a bond selloff by doubling buybacks of 10- to 30-year debt to at least $4 billion per operation, which briefly pushed yields and the dollar lower while Bitcoin and gold rose. Bitcoin has climbed to around $72,600, up about 6% in 24 hours and 15% in a week. Analysts are split: some say efforts to cap long-term yields and a weaker dollar can support Bitcoin, while others argue the debt milestone is not automatically bullish and that inflation, yields, and dollar strength will matter more. Longer term, growing debt may increase demand for Bitcoin as a hedge against fiat debasement.
