US debt tops $40T stoking debate on what it means for Bitcoin
As US federal debt tops $40 trillion for the first time, there is renewed debate over whether mounting government borrowing could strengthen Bitcoins case as a scarce, non-sovereign asset. Interest costs have also climbed, surpassing Medicare to become the federal governments second-largest budget expense behind Social Security in the first 10 months of fiscal 2026, according to Reuters. The debt milestone coincided with a Treasury move to calm a bond selloff thats pushed long-term yields to their highest levels since 2007. Treasury Secretary Scott Bessent said Wednesday the department would double buybacks of 10- to 30-year debt to at least $4 billion per operation, initially pushing yields and the US dollar lower as Bitcoin (BTC) and gold rallied. Bitcoin is continuing to surge, trading around $72,600 on Thursday morning, up roughly 6% over the past 24 hours and 15% over the past week, according to CoinGecko data. Source: Yahoo Finance Related: Bitcoin ETFs add $189M as August net inflows approach $1B Treasury buybacks add another potential Bitcoin catalyst While Bloomberg and others attributed elements of Bitcoin‘s rally to optimism over friendlier US crypto policy following President Donald Trump’s meeting with industry executives at the White House on Wednesday, market analysts pointed to the Treasury and broader fiscal









