U.S. Debt Hits $38 Trillion as Novogratz Warns Bitcoin Rally Faces Tough Odds
The United States has officially surpassed $38 trillion in national debt, marking a new record as the government faces a shutdown and growing fiscal strain. Economists warn that the debt’s rapid growth could stoke inflation, higher interest costs, and slower economic expansion, all while confidence in traditional financial systems continues to erode.
Amid this backdrop, investors are increasingly turning their attention to Bitcoin. Many see it as a long-term hedge against government overspending and the weakening purchasing power of the U.S. dollar. However, not everyone expects fireworks in the short term.
Galaxy Digital CEO Mike Novogratz said “the planets would have to align” for Bitcoin to hit $250,000 by the end of the year, calling such a move “a heck of a lot of crazy stuff.” Still, he remains optimistic about Bitcoin’s resilience, noting that the $100,000 mark should act as a key psychological support. “On the upside, you don’t really accelerate until you take out $125,000,” he added, suggesting Bitcoin may remain range-bound unless a major catalyst — such as further Fed rate cuts or the passage of the CLARITY Act — emerges.
With America’s debt crisis intensifying and inflationary pressure building, Novogratz believes Bitcoin’s role as “digital gold” could become more significant than ever. The growing disconnect between fiscal policy and financial stability may prove to be the perfect storm for Bitcoin’s long-term narrative.
