The U.S. Treasury reported federal debt at an all-time high of $39.7 trillion on Friday. Observers linked the figure to growing investor interest in Bitcoin and gold as potential hedges against dollar devaluation.
The Treasury’s Debt to the Penny dataset showed the total on Friday. Debt is increasing by roughly $7 billion per day, according to the report.
Founders of LondonCryptoClub told CoinDesk that the pace supports the debasement trade. They said limited-supply assets like Bitcoin and gold benefit when governments face high debt levels.
"This is the world of fiscal dominance and ultimately will dictate Fed policy," the founders stated. "Rates will necessarily need to be kept artificially low and liquidity will need to be provided."
Bitcoin traded just above $65,000. Spot Bitcoin ETFs recorded $33.79 million in net inflows for the week ended July 24 despite late-week outflows.
