🚨 US Debt Breaks $40 Trillion!
BlackRock: What could truly affect BTC may not be the regulatory bill, but this number!
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U.S. public debt has officially surpassed $40 trillion. Robert Michnick, Head of Digital Assets at BlackRock, believes that compared with the crypto regulatory bill the market has been closely watching, the increasingly heavy fiscal pressure in the U.S. may be the bigger variable affecting BTC’s long-term trajectory. 👀
What’s most worth focusing on now isn’t just the total debt, but also the fact that the interest the U.S. pays every year is already approaching $970 billion—almost comparable to defense spending. In simple terms, the U.S. is entering a cycle of “more debt, higher interest.” If, going forward, fiscal operations can only be sustained by increasing debt and expanding the money supply, then the market will naturally begin searching for assets that can hedge against the erosion of purchasing power caused by currency debasement.
That’s also why the “digital gold” narrative for BTC is being brought up again. 🟠
Michnick believes BTC and other crypto assets are not quite the same. Of course, the regulatory bill matters, but BTC already has spot ETFs, and its asset status in the U.S. has gained relatively clear market recognition.
What could truly change the logic of long-term capital allocation is, instead, the U.S. fiscal situation. Data shows that BlackRock’s IBIT currently holds a sizeable amount, and spot BTC ETF inflows have continued recently as well. Whether institutions will keep increasing their allocation in the future may increasingly come down to one question:
If U.S. debt continues to balloon, with the dollar’s purchasing power and fiscal risks continually debated by the market, will BTC become a “non-traditional reserve asset” in the eyes of more and more capital?
Of course, this logic isn’t a universal formula for the short term.
BTC will still be affected by liquidity, ETF flows, macro interest rates, and the leveraged market. Even Michnick himself previously warned that the sharp volatility caused by excessive leverage remains a major risk for BTC entering the institutional market.
But the figure of $40 trillion is definitely worth the market rethinking.
Click the avatar to watch the livestream + join the Jiuji chat group for daily strategies 🚀
#BTC #美国债务
BlackRock: What could truly affect BTC may not be the regulatory bill, but this number!
Group: 点击进入玖玖的粉丝群
U.S. public debt has officially surpassed $40 trillion. Robert Michnick, Head of Digital Assets at BlackRock, believes that compared with the crypto regulatory bill the market has been closely watching, the increasingly heavy fiscal pressure in the U.S. may be the bigger variable affecting BTC’s long-term trajectory. 👀
What’s most worth focusing on now isn’t just the total debt, but also the fact that the interest the U.S. pays every year is already approaching $970 billion—almost comparable to defense spending. In simple terms, the U.S. is entering a cycle of “more debt, higher interest.” If, going forward, fiscal operations can only be sustained by increasing debt and expanding the money supply, then the market will naturally begin searching for assets that can hedge against the erosion of purchasing power caused by currency debasement.
That’s also why the “digital gold” narrative for BTC is being brought up again. 🟠
Michnick believes BTC and other crypto assets are not quite the same. Of course, the regulatory bill matters, but BTC already has spot ETFs, and its asset status in the U.S. has gained relatively clear market recognition.
What could truly change the logic of long-term capital allocation is, instead, the U.S. fiscal situation. Data shows that BlackRock’s IBIT currently holds a sizeable amount, and spot BTC ETF inflows have continued recently as well. Whether institutions will keep increasing their allocation in the future may increasingly come down to one question:
If U.S. debt continues to balloon, with the dollar’s purchasing power and fiscal risks continually debated by the market, will BTC become a “non-traditional reserve asset” in the eyes of more and more capital?
Of course, this logic isn’t a universal formula for the short term.
BTC will still be affected by liquidity, ETF flows, macro interest rates, and the leveraged market. Even Michnick himself previously warned that the sharp volatility caused by excessive leverage remains a major risk for BTC entering the institutional market.
But the figure of $40 trillion is definitely worth the market rethinking.
Click the avatar to watch the livestream + join the Jiuji chat group for daily strategies 🚀
#BTC #美国债务
