Key Takeaways:The US national debt has climbed to $37.9 trillion, growing by nearly $6 billion per day — or $4.2 million per minute.The debt is projected to surpass $38 trillion within weeks and $50 trillion within a decade.Investors are turning to Bitcoin and gold as hard-asset hedges amid accelerating debt and dollar debasement concerns.Bitcoin trades around $123,874, after touching an all-time high above $125,500 over the weekend.America’s National Debt Nears $38 TrillionThe United States national debt is fast approaching $38 trillion, rising by an eye-watering $69,890 per second, according to the U.S. Congress Joint Economic Committee’s debt dashboard.This translates to about $6 billion per day — a figure greater than the entire GDP of over 30 countries, based on Worldometer data.At its current trajectory, the U.S. debt is expected to cross the $38 trillion threshold within 20 days, underscoring growing fiscal concerns in global markets.U.S. Representative Keith Self warned that the total could reach $50 trillion within a decade if no corrective action is taken:“Congress must act now — demand fiscal responsibility from your leaders before the gradual slide becomes a sudden collapse.”Bitcoin and Gold Become the “Debasement Trade”As U.S. debt spirals higher and inflation risks reemerge, investors are turning to Bitcoin (BTC) and gold as protection against dollar depreciation.Last week, JPMorgan described the two as part of the “debasement trade”, a strategy to hedge against long-term fiat currency erosion.Bitcoin recently hit a new all-time high of $125,506 on Saturday before consolidating around $123,874 on Monday. Gold also climbed to a record $3,920 per ounce, extending its year-long uptrend.Bitcoin’s fixed supply and decentralized monetary policy continue to attract institutional capital — including from traditional finance leaders once skeptical of crypto.BlackRock CEO Larry Fink, who previously dismissed Bitcoin, said in January that BTC could eventually reach $700,000 amid persistent fiat debasement fears.Ray Dalio and Global Debt WarningsRay Dalio, founder of Bridgewater Associates, reiterated in July that investors should allocate at least 15% of their portfolios to hard assets such as Bitcoin or gold, citing the best risk-to-return profile under current macro conditions.Dalio warned that the “debt doom loop” is not unique to the U.S. — other Western economies like the UK also face structural fiscal imbalances and weak currencies.Globally, total debt rose to $337.7 trillion by the end of Q2 2025, according to Reuters and the Institute of International Finance (IIF), driven by quantitative easing and a softening U.S. dollar.Trump Administration’s Debt-Cutting MeasuresThe Trump administration has pledged to reduce federal spending and address the deficit, even as total debt levels continue climbing.In early 2025, Tesla CEO Elon Musk briefly joined the Department of Government Efficiency, helping to identify cost-cutting opportunities reportedly saving $214 billion.President Donald Trump later signed the “Big Beautiful Bill Act” in July, a sweeping fiscal reform aimed at cutting $1.6 trillion in spending over the next decade.However, the bill’s initial implementation costs have pushed total debt past $37 trillion, with estimates suggesting a $3.4 trillion budget impact over the next 10 years.Rising Debt, Shrinking Trust — and the Bitcoin EffectWith debt levels accelerating and fiat purchasing power eroding, Bitcoin’s narrative as a hedge against fiscal mismanagement is gaining mainstream traction.The combination of record U.S. debt, a weakening dollar, and surging Bitcoin and gold prices underscores a growing investor preference for scarce, non-sovereign assets.As one market strategist put it:“Every dollar borrowed by the U.S. government strengthens the case for Bitcoin.”
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