The US federal debt is approaching 40 trillion dollars, up from 37 trillion in summer 2025, while annual interest payments now exceed 1 trillion dollars, surpassing the defense budget. Approximately 10.1 trillion dollars in Treasury securities are maturing within one year and must be refinanced at current market rates, with 30-year yields above 5.2 percent. This trajectory fuels the debasement trade, a strategy favoring assets perceived as scarce such as gold and Bitcoin, whose maximum supply is capped at 21 million units. However, while structural deficits and rising interest strengthen Bitcoin’s monetary argument long-term, higher Treasury yields can reduce liquidity available for risky assets and trigger sharp BTC declines, as seen during the March 2020 liquidity crisis and the 2022 monetary tightening.
Source: Read the original article
