The total US debt has surpassed $37 trillion, sparking discussions about its economic implications and its effect on Bitcoin prices.
Debt Growth and Economic Policy
Representative Thomas Massie announced this milestone on social media, linking it to the 'One Big Beautiful Bill Act', signed into law by Donald Trump. Despite his promise to cut federal spending by $1.6 trillion, the deficit continues to rise.
Market Forecasts and Bitcoin Impact
With the growth of debt, concerns arise about possible easing of monetary policy, including quantitative easing. Ryan Lee, chief analyst at Bitget, noted that US debt has increased from $26.7 trillion in 2020 to over $37 trillion in five years, a 38% rise. During the same period, Bitcoin's price rose over 925%. 'The more the debt grows, the higher the likelihood of BTC price soaring to new highs,' Lee stated.
Expert Opinions Discussion
Jamie Coutts, chief crypto analyst at Real Vision, believes that servicing the debt could drive growth in the M2 money supply. Based on Bitcoin's correlation with fiat money supply, he projects a price of $132,000 before the end of 2025. Elon Musk has also criticized the spending bill, warning that it could raise the deficit to $2.5 trillion. Some analysts, including Arthur Hayes, co-founder of BitMEX, see the potential for Bitcoin to reach $250,000 if inflation rises and QE returns.
There is a clear link between the growth of government debt, potential easing measures, and Bitcoin's increasing value. The market continues to monitor these developments closely.
