US public debt has crossed the $40 trillion threshold for the first time, fueling debate about its implications for Bitcoin. Bitcoin ETFs saw net inflows of $189 million in August, with monthly flows approaching $1 billion. Some analysts believe the Treasury’s decision to increase purchases of long-term bonds could benefit Bitcoin by changing rate dynamics, while others remain cautious about persistent deficits and potential increases in borrowing costs. Looking ahead, DeFi protocol analysts suggest that continued growth in US debt could strengthen Bitcoin’s appeal as a hedge against currency debasement due to its fixed supply.
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