$40 Trillion Debt Burden Sparks Debate on Bitcoin's Value
The US federal debt has surpassed $40 trillion for the first time, sparking debate over whether mounting government borrowing could bolster Bitcoin's case as a scarce, non-sovereign asset.
According to Reuters, interest costs have also climbed, surpassing Medicare to become the federal government's second-largest budget expense behind Social Security in the first 10 months of fiscal 2026.
The debt milestone coincided with a Treasury move to calm a bond selloff that's pushed long-term yields to their highest levels since 2007. Treasury Secretary Scott Bessent said the department would double buybacks of 10- to 30-year debt to at least $4 billion per operation.
This move initially pushed yields and the US dollar lower, causing Bitcoin (BTC) and gold to rally. Bitcoin is currently trading around $72,600, up roughly 6% over the past 24 hours and 15% over the past week, according to CoinGecko data.