US national debt nears $38T as Bitcoin gains
US national debt rises toward $38 trillion
The US national debt Bitcoin connection is growing stronger as America’s debt nears a record $38 trillion. Investors are increasingly turning to Bitcoin and gold as trust in the dollar declines.
The debt currently stands at $37.9 trillion and is increasing by about $69,890 per second, or nearly $4.2 million every minute, based on data from the US Congress Joint Economic Committee. That equals around $6 billion per day – more than the GDP of 30 countries, according to Worldometer.
US Representative Keith Self warned that the total could exceed $38 trillion in weeks and possibly reach $50 trillion within a decade. He urged Congress to take immediate action to prevent an economic collapse.
At the current pace, analysts expect the debt to surpass $38 trillion in just 20 days.
Investors turn to Bitcoin and gold
Growing fiscal concerns have driven investors toward assets like Bitcoin and gold. JPMorgan recently described both as part of the “debasement trade,” a hedge against the weakening dollar.
Bitcoin reached a new record high of $125,506 on Saturday, while gold hit $3,920 the following day. Institutional interest has grown, with BlackRock CEO Larry Fink – once a Bitcoin skeptic – saying in January that Bitcoin could reach $700,000 as currencies lose value.
Bridgewater Associates founder Ray Dalio advised investors to keep about 15% of their portfolios in hard assets like Bitcoin or gold. He noted that this mix offers a better “return-to-risk ratio” during periods of currency depreciation.
Global debt adds to the pressure
Dalio also warned that the US is not alone in this financial spiral. Other Western nations, including the UK, face similar “debt doom loop” challenges. Their currencies, he said, may continue to weaken against Bitcoin and gold, which serve as effective hedges.
Reuters reported that total global debt rose to a record $337.7 trillion by the end of the second quarter. The increase came amid ongoing quantitative easing and a softer US dollar, according to data from the Institute of International Finance.
Trump administration seeks to curb US debt
Efforts to reduce the US national debt have been central to Donald Trump’s policy agenda. The Trump administration enlisted Tesla CEO Elon Musk to help with the Department of Government Efficiency, saving $214 billion through cost-cutting measures.
In July, President Trump signed the “Big Beautiful Bill Act,” aiming to cut more than $1.6 trillion in federal spending. However, analysts say the bill may ultimately raise costs, pushing the national debt above $37 trillion.
Musk’s 130-day government term ended soon after, as his partnership with Trump cooled. The bill is now projected to add $3.4 trillion in costs over the next decade despite its initial savings goals.
