The U.S. national debt has surpassed $37 trillion, a historical high, with 25% of federal tax revenue being used to pay interest on the debt. This staggering figure has sparked deep concerns in the market regarding inflation rebound, fiscal stability, and the long-term value of the dollar. In this context, investors are beginning to ponder: Can cryptocurrencies, especially Bitcoin and stablecoins, become new safe-haven assets?

#### How does the debt crisis affect the crypto market?

1. Inflation concerns drive funds into anti-inflation assets

- High levels of debt may force the Federal Reserve to maintain loose monetary policy, or even restart quantitative easing (QE), exacerbating the risk of dollar depreciation.

- Bitcoin (BTC), due to its fixed supply (21 million coins), is often seen as 'digital gold' and may attract more funds to hedge against inflation.

2. Dollar credit is impaired, demand for stablecoins may rise

- If market confidence in the dollar declines, investors may turn to stablecoins (such as USDT and USDC) as short-term safe-haven tools, especially in cross-border transactions and decentralized finance (DeFi).

3. Risk assets under short-term pressure, but long-term bullish for crypto?

- If the debt crisis triggers an economic recession, it could lead to turmoil in the stock and bond markets, dragging down risk assets like Bitcoin in the short term.

- However, if the Federal Reserve is forced to cut interest rates or implement new stimulus policies, a flood of liquidity may eventually drive up cryptocurrency prices.

#### How are investors adjusting their strategies?

- Conservative: Increase allocations to Bitcoin and stablecoins, reduce holdings in high-risk altcoins.

- Aggressive: Focus on crypto assets strongly related to dollar liquidity (such as DeFi protocols and Layer 2 tokens).

- Hedging strategy: Use options or futures markets to short the dollar index (DXY), while holding long positions in Bitcoin.