US Fiscal Deficit Hits Record High, Boosting Case for Bitcoin and Gold

The US primary fiscal deficit has reached 3.59% of GDP as of August 31, surpassing that of other major advanced economies.

This development could increase the risk premium on US Treasuries and lead to capital shifting towards countries with stronger fiscal positions or alternative assets like Bitcoin and gold.

However, when Treasury yields rise due to concerns over government debt rather than economic growth, demand can flow into havens such as Bitcoin and gold.

Bitcoin has gained 23% this month, while gold has risen about 10% during the same period, coinciding with growing demand for scarce assets amid concerns about fiscal soundness.