Crypto
Fiat Currency Credibility in Crisis: $40 Trillion Debt Sends Bitcoin to Record High
The U.S. national debt has surpassed the $40 trillion mark, sparking concerns over fiat currency credibility and sending both Bitcoin and gold prices soaring.
On August 25, Bitcoin touched a new high of $81,237 for the first time since mid-May, while international gold prices approached $4,700 per ounce, posting a monthly gain of nearly 15%.
The rally in these two distinct assets points to a shared macro narrative: the reassessment of fiat currency credibility triggered by the U.S. national debt breaching the $40 trillion threshold.
Bitcoin's price surge can be attributed to short squeezes and ETF inflows, with nearly $2.5 billion in leveraged bitcoin short positions being liquidated between August 19 and 21.