Investors flock to crypto and precious metals as US debt hits $40 trillion and Treasury buybacks double to $4 billion.
Bitcoin jumped 23% this week as US debt surpassed $40 trillion, with no plan to reduce borrowing or balance the budget. Interest payments on the debt now exceed Medicare costs, ranking second only to Social Security in federal spending.
The rally extended to crypto-related stocks, including Coinbase and Robinhood, which posted double-digit gains. Analysts linked the surge to record deficit spending and the Treasury’s pledge to double debt buyback operations to $4 billion, fueling demand for alternative assets.
Hedge fund manager Ray Dalio recommended allocating 15% of portfolios to gold and a small portion to Bitcoin, warning of a potential US debt crisis within three years if policies remain unchanged.