Gold and Bitcoin surge as U.S. debt hits $38T
Investors are increasingly turning to Bitcoin and gold as the U.S. national debt approaches an unprecedented $38 trillion, rising by roughly $69,890 per second — or $6 billion daily — according to data from the U.S. Congress Joint Economic Committee (JEC).
Representative Keith Self warned that the debt figure could surpass $50 trillion within a decade if spending continues unchecked, reports Cointelegraph.
“Congress must act now—demand fiscal responsibility from your leaders before the gradual slide becomes a sudden collapse,” Self said on Friday. Economists say the scale of borrowing now outpaces the GDP of more than 30 nations, signaling growing concerns over America’s fiscal sustainability and inflation outlook.
Bitcoin and gold surge on dollar debasement fears
Both Bitcoin (BTC) and gold hit new record highs over the weekend, with Bitcoin reaching $125,506 and gold climbing to $3,920. Analysts at JPMorgan described the trend as a “debasement trade,” reflecting investors’ flight to scarce assets as fiat currencies lose purchasing power. Bitcoin’s fixed 21-million supply and decentralized system have become attractive hedges for institutions seeking alternatives to government debt and fiat money.
Prominent investors like Larry Fink, CEO of BlackRock, have reversed earlier skepticism, predicting Bitcoin could reach $700,000 under prolonged currency debasement. Similarly, hedge fund legend Ray Dalio advised investors to hold at least 15% of portfolios in hard assets, including Bitcoin and gold, to strengthen risk-adjusted returns.
Trump administration aims to slow debt spiral
President Donald Trump’s administration has made deficit reduction a stated priority, enlisting Tesla CEO Elon Musk earlier this year in the Department of Government Efficiency to streamline federal spending. The initiative reportedly saved $214 billion before Musk’s 130-day term expired. In July, Trump signed the “Big Beautiful Bill Act,” projected to save $1.6 trillion in federal expenditures over the next decade.
However, implementation costs pushed the debt beyond $37 trillion, with long-term projections showing limited improvement in structural deficits. Meanwhile, analysts warn that global debt levels — now a record $337.7 trillion — are compounding risks for both the U.S. and allied economies, as major currencies like the British pound and euro face similar fiscal strains.
Recently we wrote that the U.S. digital asset industry may soon see a significant shift in its regulatory landscape as Mike Selig, chief counsel at the SEC’s Crypto Task Force, emerges as the frontrunner to chair the Commodity Futures Trading Commission (CFTC).
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