US Federal Debt Hits $39.7T Record, Driving Bitcoin Gold Demand

Record $39.7T US debt fuels flight to scarce assets. Bitcoin holds above $65,000 as investors hedge against fiat debasement and fiscal dominance risks.

Woofun AI data shows that US federal debt reached a record $39.7 trillion as of last Friday, increasing by approximately $7 billion daily. This rapid accumulation surpasses the market value of most cryptocurrencies, prompting investors to allocate capital into limited-supply assets like Bitcoin and gold to hedge against dollar depreciation.

Bitcoin maintains support above $65,000 amid easing geopolitical tensions, while ETH outperforms with the ETH/BTC ratio breaking key moving averages.

However, analysts note that Bitcoin’s historical price action resembles tech stocks more than traditional safe havens, leaving its hedging efficacy debated despite the "currency debasement trade" narrative.