US debt nears $40T as Bitcoin draws attention

• US national debt is nearing $40 trillion, raising fresh debate about Bitcoin’s role as a hedge.
• The debt has climbed sharply, while some analysts point to Bitcoin’s fixed supply.
• The relationship between rising debt and Bitcoin remains uncertain in the short term.

US national debt is approaching $40 trillion, increasing focus on the country’s borrowing and fiscal outlook.

The debt reached about $39.6 trillion in July, according to figures cited by BeInCrypto.

The Congressional Budget Office expects debt held by the public to reach $56 trillion by 2036.

Bitcoin (CRYPTO:BTC) advocates argue that its fixed supply could make it a hedge against currency debasement.

However, rising government debt does not automatically lead to higher Bitcoin prices.

Bitcoin can respond to interest rates, liquidity, risk appetite and other market factors over shorter periods.

The growing debt burden has also increased attention on US Treasury yields and government borrowing costs.

At the time of reporting, Bitcoin price was $64,305.71.