The numbers from the US Treasury are not in dispute. The US Treasury Department announced last week that the federal government’s debt stands at an all-time high of $39.7 trillion, growing at approximately $7 billion per day.
That daily borrowing figure, if measured as a cryptocurrency by market capitalization, would rank it as the 16th-largest digital asset in the world.
The debt ceiling, raised by $5 trillion to $41.1 trillion in July 2025 under the One Big Beautiful Bill Act, has already been consumed by more than half. The Bipartisan Policy Center estimates the next debt limit will be reached sometime between late winter and mid-summer of 2027.
Total global debt reached a record $353 trillion by the end of Q1 2026, according to the Institute of International Finance’s Global Debt Monitor.
The debasement trade, and why it is back
The mechanism driving both Bitcoin and gold higher is the same one that has driven every debasement trade in financial history. Governments that cannot balance their books eventually face a choice between defaulting on debt or inflating it away.
Related: Elon Musk is putting Dogecoin on the moon in 49 days, here is what history says happens next
The US is currently borrowing $7 billion every day against a ceiling that will need to be raised again by mid-2027. When a government finances its deficit through borrowing and keeps rates artificially low to service that debt, the purchasing power of the currency it issues declines.
Assets with fixed or finite supply appreciate in real terms against that declining currency. That is not a theory.
It is the mechanism that has driven every significant gold rally in modern history, and increasingly, every significant Bitcoin rally too.
Where the money is going
Bitcoin is trading at approximately $63,800 today, up from below $58,000 when the selling stalled on June 1. Gold futures are at $4,097.50 per troy ounce. Both assets have been climbing as the debt figure climbs alongside them.
Goldman Sachs retained a structural…
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