Bitcoin briefly approached $90,000 earlier this month as rising global debt and concerns over weakening fiat currency purchasing power supported so-called devaluation trades in assets such as Bitcoin and gold. According to ChainCatcher, data from the Institute of International Finance showed global debt rose by $10 trillion in the first half of this year to more than $365 trillion.

U.S. debt has climbed above $40 trillion, while annual interest payments have risen to $1.27 trillion, exceeding defense and Medicaid spending and trailing only Social Security. The institute warned that interest costs could increase further as benchmark rates rise.

Coin Bureau founder and cross-asset analyst Nic Puckrin said the current environment favors devaluation assets such as Bitcoin and gold, and that this has helped support Bitcoin's recent gains. He said larger debt burdens in major economies can push down real borrowing costs and allow inflation to erode the real value of debt, making the trade more attractive.

The Kobeissi Letter analysts said the U.S. dollar's purchasing power has fallen 23% since 2020, meaning a 30% rise in assets over the same period would leave investors roughly at breakeven in real terms. They also said U.S. inflation has remained above the Federal Reserve's 2% target for 60 consecutive months.