Bitcoin Price Surges to $69,994 as US Debt Hits $40 Trillion

The Bitcoin price has broken above its recent trading range and is now hovering near $70,000. This comes as U.S. government debt crosses the $40 trillion mark, with Treasury expanding long-term bond buybacks.

A key factor driving the price surge is the rising US public debt, which has more than doubled in the past decade. The increasing debt explains why bond vigilantes are pushing back, with 30-year bond yields rising to their highest level in decades. However, a recent intervention by Treasury head Scott Bessent, buying back the debt, may have provided short-term relief.

U.S. spot Bitcoin ETFs attracted $517 million on August 19, extending a three-day inflow streak. The cumulative net inflows into these funds now stand at about $52.79 billion, with total ETF net assets reaching roughly $84.31 billion, equal to approximately 6.08% of Bitcoin's market capitalization.