Here's 1 metric on U.S. debt that makes bitcoin's bull case look stronger than ever
The U.S. federal budget deficit, currently at 3.59% of GDP, is being cited by analysts as a primary driver for investors moving toward hard assets like Bitcoin and gold. The analysis suggests that concerns over fiscal discipline are increasing demand for safe-haven assets despite rising Treasury yields.
Why it matters
The relationship between national debt levels and the performance of alternative assets like cryptocurrency is a critical indicator of current investor sentiment and macroeconomic health.
Much has recently been said about the burgeoning U.S. federal debt and how it's bullish for hard assets such as bitcoin BTC $ 78 459,85 and gold. The problem looks more severe once that debt is weighed against gross domestic product (GDP) and then compared against other nations’.
The U.S. government is running a primary budget deficit of 3.59% of GDP, the largest among major advanced economies, bigger even than Japan's, according to Bloomberg data shared by The Kobeissi Letter . The primary deficit excludes interest payments on existing debt, measuring only the gap between what the government spends and its revenue. That makes it a cleaner read on fiscal discipline — how much new borrowing results from spending choices rather than the cost of servicing the existing debt.
The message is clear: Spending is out of control.
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