US Public Debt Tops $40 Trillion, Reigniting Debasement Trade Hopes for Bitcoin and Ethereum

The U.S. public debt has surpassed $40 trillion, reaching approximately $40.05 trillion on August 18 and climbing to roughly $40.10 trillion by August 25, according to Treasury data.

The Congressional Budget Office has projected a $1.9 trillion fiscal 2026 deficit, with interest costs and mandatory spending expected to keep shortfalls elevated for the foreseeable future.

In response to rising borrowing costs, Treasury Secretary Scott Bessent announced a doubling of long-dated Treasury buybacks, from $2 billion to $4 billion per week, framed as a liquidity-support measure aimed at easing pressure on the long end of the yield curve.