US Debt Hits $40 Trillion, Bitcoin Fails as Sovereign Hedge

The U.S. federal debt has surpassed $40 trillion for the first time on August 19. Analysts are giving investors a harsh reality check, warning that the milestone is not a significant event in terms of Bitcoin's immediate price. According to Anand Sinha, despite the hype about currency debasement, gold is currently a cleaner trade than BTC.

BTC remains trapped by risk-asset correlations and has failed to rally during equity sell-offs, making it just another speculative asset rather than a sovereign hedge. The debt crisis will not save your portfolio if liquidity dries up, Anand Sinha emphasizes.