High US bond yields exert immediate pressure on bitcoin by making risk-free investments more attractive to investors. US federal debt now exceeds $40 trillion with annual financing costs surpassing $1 trillion. This debt accumulation paradoxically strengthens bitcoin’s monetary narrative as a scarce asset independent of fiscal policies. Interest payments represent approximately 19% of US federal spending for fiscal year 2026. Bitcoin thus remains caught between its short-term risk asset behavior and its long-term status as a monetary alternative.
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