TL;DR
- The US national debt has surged to nearly $38 trillion, growing at $6 billion per day, fueling fears of dollar debasement.
- Investors are flocking to alternative assets, with Bitcoin surpassing $125,000 and gold reaching $3,924 per ounce.
- Weakening currencies and persistent inflation are pushing both retail and institutional players toward cryptocurrencies and precious metals as potential stores of value.
The United States’ national debt has reached $37.88 trillion, increasing at an unprecedented pace of $69,891 per second, or roughly $6 billion daily. Over the past year, debt has risen by $2.2 trillion, averaging $283,098 per household. Meanwhile, the government paid $241.26 billion in interest over the last 12 months at an average marketable debt rate of 3.415 percent, creating growing concern over fiscal sustainability.
As the debt expands, investors are increasingly turning to alternative stores of value. Bitcoin recently surpassed $125,000, while gold climbed to $3,924 per ounce, reflecting growing unease over currency weakness. The dollar is on track for its worst year since 1973, losing over 10% year-to-date and nearly 40% of its purchasing power since 2000.
Safe Haven Assets Surge Amid Currency Weakness And Market Volatility
The unusual correlation between traditionally safe assets and equities is signaling a broader shift. Gold and the S&P 500 moved in tandem 91% of the time in 2024, highlighting the dollar’s declining influence. Over the past six months, the S&P 500 has jumped 40%, while the Nasdaq 100 posted six consecutive monthly gains. Analysts note that gold, silver, and Bitcoin have become increasingly intertwined as alternative reserves, with gold and silver experiencing historic central bank support from China and India.
Global political tensions and fiscal uncertainty are also strengthening alternative assets. The ongoing US government shutdown has furloughed 800,000 federal employees and left 700,000 working without pay, delaying key economic data. Meanwhile, the yen and euro are weakening due to domestic political developments, prompting further flows into cryptocurrencies and precious metals.
Bitcoin Outshines Traditional Investments As Adoption Grows
Bitcoin has far outpaced the S&P 500 since 2020, with a $100 investment growing to $1,473.87 compared to $209.85 in the S&P 500. Year-to-date, Bitcoin is up 32%, while Ethereum has surpassed $4,600, bringing total crypto market capitalization to $4.35 trillion. Technical indicators suggest Bitcoin may reach $140,000-$155,000 in a final blow-off phase before any significant correction, reinforcing its appeal as a hedge against traditional financial instability.
