US FEDERAL DEFICIT HITS -6.28% OF GDP: WHAT IT MEANS FOR CRYPTO TRADERS
The U.S. government continues to spend more than it earns, with the federal deficit now at -6.28% of GDP in 2025. That means the government is borrowing heavily — a trend that’s been growing for decades, especially during crises.
Historically, rising deficits weaken confidence in fiat currencies like the US dollar. For many investors, Bitcoin and crypto become a hedge against this excessive government debt.
Key highlights:
- The last budget surplus was over 20 years ago (2001).
- The 2020 pandemic triggered a record -14.67% deficit.
- With higher interest payments and ongoing spending, the debt is compounding.
What does it mean for crypto?
As trust in traditional finance declines, more capital could flow into decentralized, limited-supply assets like BTC and ETH. Keep an eye on how fiscal policy impacts market sentiment.
