As of July 2025, the US national debt has reached a record level of $36.2 trillion. This surge is associated with President Donald Trump's fiscal policy changes.
Reasons for Debt Increase
The increase in national debt is driven by the recent passage of the fiscal law known as the 'Big Beautiful Bill' under the Trump administration. It is estimated that this could add about $6 trillion to the debt over the next decade, despite planned spending cuts of $1.5 trillion. According to the Cato Institute, 'spending is projected to surge by the year 2035, primarily due to growing interest expenses.'
Economic Consequences
Immediate effects of the debt increase are observable in the financial markets. Expected interest payments of $892 billion for 2025 raise concerns. This can affect market liquidity and increase asset volatility.
Cryptocurrency Outlook in Fiscal Stress Conditions
Growing government debt may create opportunities for cryptocurrencies, such as Bitcoin and Ethereum, to become alternative assets in times of uncertainty. Historically, during periods of increased debt, risk assets, including cryptocurrencies, often gain traction.
The rising national debt of the US and the effects of fiscal changes warrant attention from both investors and policymakers, as these factors may alter market dynamics.
