US Debt Tops $40 Trillion: Will the Doom Loop Drive Bitcoin Demand?
US government debt just passed $40 trillion for the first time. The Treasury put the total at $40.05 trillion on Tuesday. Bitcoin (BTC) traders now ask if the $40 trillion US debt record makes crypto the better place to hide.
The number is hard to picture. It works out to about $119,700 for every American. Interest alone costs nearly $1.2 trillion a year. That feeds fears of a doom loop, where borrowing costs force even more borrowing.
Why the $40 Trillion US Debt Number Matters
The government spent $432.3 billion more than it earned in July alone. That was the widest monthly gap since March 2021. This fiscal year's shortfall is already near $1.8 trillion. The latest trillion piled up in just 154 days. The first trillion took until the end of 1981.
The debt has grown by $17 trillion since 2020. A decade ago, it stood near $19.4 trillion. Meanwhile, public debt now roughly equals the size of the entire US economy.
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