Two months after Illon Musk criticized the Trump administration for national debt, it is reports that the United States added another trillion dollars of federal debts in just 48 days.
The deficit spending has become the largest Macro driver with the least prevailing attention. Bitcoin and Ethereum and decentralized financing (Defi) are no longer just speculative plays. Instead, it is a structural hedge against a broken financial system.
Is the US debt a vortex around spending or interest rates?
The boom translates into about $ 21 billion a day. It sheds light on what analysts and investors such as Elon Musk have warned before, that the FIAT system is closed in an unnecessary path, and digital assets may be hedging.
It is too late, Elon Musk in particular summoned the recently signed draft law that it is very important to amplifying an already worrying deficit.
However, since August 11, US debt has exhorted $ 200 billion, prompting the national total at an amazing distance of $ 38 trillion.
Washington published a deficit of $ 291 billion in July alone, the second largest of which is July. The deficit extends at $ 1.63 trillion for the fiscal year 2025, an increase of 7.4 % on an annual basis (YO), and its path to exceeding $ 2 trillion.
Likewise, government spending exploded to 44 % of GDP, an unprecedented level during World War II and the 2008 financial crisis.
While the Federal Reserve (Fed) still insists on a soft landing, the basic numbers tell the harsh story. Revenue barely grows by 2.5 % annually, while spending increased by approximately 10 % last month.
“… it is an issue of spending, not a problem with the interest rate … it is a spending crisis,” analysts in Kobeissi message Articulated.
This note indicates that the annual deficit will remain in trillion even if the federal reserve is deviated.
The effects of encryption and financial markets
Bond markets are already scrutiny signs. Investors demand higher returns for the United States Treasury, with the removal of recent auctions exceeding 5 %, which are rare in modern history.
With the speedy re -financing of debt at higher rates, the financial hole goes deep. This provides a somewhat artistic view of shares and commodities, especially encryption.
In the short term, the higher returns can deplete liquidity from the origins of danger. However, in the long run, constant deficit spending disturbs confidence in Fiat. This trend was historically benefited from bitcoin and the numerical assets consisting of cruelty.
While encryption traders often put Bitcoin as digital gold, the issue strengthens when the FIAT systems appear sustainable.
They added: “On the current financial road, there is 100 % certainty of American bankruptcy in the long run.”
For many in encryption, the American debt track verifies the authenticity of the thesis that decentralized assets provide protection against sovereign financial mismanagement.
With 38 trillion dollars of debt looming on the horizon and deficit in more than 1.5 trillion dollars annually, the temptation of future policy makers to amplify the obligations. This danger is my budget to narrate the scarcity of bitcoin.
Altcoins can indirectly benefit, as the founders are exploring alternatives to the productivity cabinet.
Stablecoins and the tank already absorb the capital, but Spillover may extend liquidity over time to wider encryption markets.
What happens after that depends on whether the Congress is the lead in spending (unlikely in the election year) and how strongly the policy of the balance of assets in the field of federal reserves against debt sustainability. However, any path carries risks.
Post -US debt rises $ 1 trillion in 48 days – what it means to encryption first appeared on Beincrypto.
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2025-08-24 20:39:00
