After the US federal debt totalled $40 trillion, the market once again turned to bitcoin and gold. Robbie Mitchnick, the global digital asset manager in Beled, stated that what really affects the medium- and long-term valuation of bitcoin might not be the progress of encrypted legislation, but the continued expansion of the United States debt and fiscal deficit.
Debt breakthrough, $40 trillion.
According to the United States Treasury Department, federal debt rose on 18 August to about 40.05 trillion dollars, less than five months before the 39 trillion dollar breakthrough. Of that amount, approximately $32.3 trillion was held by the public and an additional $7.8 trillion was held within the Government.
According to Mitchnick, debt and deficits are returning to market focus. As investors begin to worry about the purchasing power of French currency, the assigned value of scarce assets is usually reassessed, benefiting from bitcoin and gold.
Deficit and interest expenditure continues to rise
The Budget Office of the United States Congress projected a federal deficit of $1.9 trillion for the 2026 fiscal year. By 2036, according to current legislation, the annual deficit may have increased to $3.1 trillion, or 6.7 per cent of GDP.
The Government ' s financial report also shows that the net interest expenditure for the financial year 2025 was approximately $970 billion. Maintaining high interest rates increases the cost of refinancing debt stock and may further boost future borrowing needs.
Bitcoin is more driven by financial expectations.
During last week's market rebound, Bitcoin recorded one of the strongest three-day increases since 2023, with prices rising from $60,000 to close to $80 million, and then a backsliding increase, which still stands at $80,000.
In Mitchick ' s view, bitcoin is still strong in the period of stock pressure and increased volatility in bond transactions, suggesting that it is not fully consistent with traditional risk assets. Belet had previously described Bitcoin as a scarce, decentrized currency alternative.
He also suggested that the CLARITY Act, which was pending in the United States, might benefit from a wider encryption market, but that the impact of the bitcoin itself was not necessarily greater. By contrast, decentrization of finance, trading platforms and the still controversial tokens of regulatory classification may rely more on subsequent market structure legislation.