Is America's $40 Trillion Debt Load Bullish or Bearish For Bitcoin? The Answer Might Surprise You.

Key Points The national debt reached $40 trillion in August, climbing the last trillion in less than five months. Bitcoin rallied roughly 23% on the news, reaching the high $70,000s in its sharpest three-day move since 2023. Liquidity and real yields drove the August rally, not the debt milestone itself. 10 stocks we like better than Bitcoin › Many crypto investors see opportunity in rising U.S. national debt. The so-called debasement trade idea suggests that stable assets will outperform if the government allows inflation to run high. More debt means more money in circulation, right? So the dollar weakens, boosting the value of inflation hedges such as gold, bonds, real estate, and Bitcoin (CRYPTO: BTC) . That's the popular theory.