The US debt has just exploded with a big bang; Treasury data shows that the national debt has first surpassed the $30 trillion mark.
What does this mean? It has more than doubled since 2018, and the money printing machine is running at full throttle. Even more frightening is that the total national debt has soared to $38.4 trillion, which is simply astronomical.
What is the most critical issue? It's the interest! Citigroup experts have stated that just the interest payments alone amount to $1.2 trillion annually. Even if tariffs bring in hundreds of billions, compared to this interest, it's just a drop in the bucket. They themselves admit, "It's like being stuck in quicksand, still sinking."
In my opinion, this is the inevitable result of the traditional financial system being unable to withstand pressure; the reckless printing of money to pay off debt. In such an environment, money will only become increasingly worthless.
What impact does this have on our crypto market?
This is the key! The institutional big shots have already seen through this. The world's largest asset management company, BlackRock, just released a report stating that the surge in US debt will render traditional hedging tools ineffective, which will accelerate Wall Street institutions rushing to allocate cryptocurrencies. This is akin to the doubling speed of 2018; it’s as if a historical script has been written for Bitcoin.
What should retail investors do?
Don’t panic! A macro bomb of this magnitude will intensify market volatility in the short term, but in the long run, funds will frantically seek new avenues for risk aversion and value preservation. Cryptocurrencies, especially Bitcoin, which has a fixed supply, are the hardest choice for "digital gold." Institutions are already on their way.
Data will be released tonight, and the market will definitely react. Remember, in chaotic times, buy gold; in the digital age, buy Bitcoin. But don’t get too excited, manage your positions, and hold onto your spot.
If you want to understand how the market digests this big news in real-time, want to know exactly at which point to enter the market, and where to set stop-loss orders most safely? The Lord's Village has already provided reminders; those who want to keep up should become villagers of the Lord's Village!
