Investors Turn to Bitcoin and Gold as U.S. Debt Nears $38T
- The U.S. national debt is nearing $38 trillion, rising by almost $6 billion every day.
- Investors are turning to Bitcoin and gold as safe havens amid growing debt and inflation fears.
- Global debt has surged past $337 trillion, fueling a shift toward decentralized assets.
The United States is facing an accelerating fiscal challenge as its national debt approaches a staggering $38 trillion. The debt has been increasing by nearly $6 billion each day, fueling growing concerns about economic stability. As fears rise over the long-term value of the dollar, investors are shifting toward hard assets like Bitcoin and gold for protection.
U.S. Debt Surge Raises Financial Alarm
The U.S. national debt now sits at $37.9 trillion, according to the U.S. Congress Joint Economic Committee. This figure increases by about $69,890 every second, equivalent to more than $4 million per minute. This rate is projected to have the debt exceed $38 trillion within a few weeks and would hit $50 trillion within a decade.
Representative Keith Self has urged lawmakers to take immediate action to prevent a financial collapse. He warned that without fiscal restraint, the nation risks losing control of its economic future. “Congress must act now — demand fiscal responsibility from your leaders before the gradual slide becomes a sudden collapse,” Self said.
The high rate of debt accumulation can be attributed to the continuous government expenditure, stimulus programs, and growth in deficit. Increasing inflation, geopolitical instability, and declining world growth are putting additional pressure. Economists caution that an increase in the interest payment on the debt would limit the government’s ability to finance important programs and investments.
While policymakers debate over solutions, the national debt keeps rising, prompting investors to seek stability elsewhere beyond the conventional markets. The increasing uncertainty has revived attention to alternative assets that were used initially as hedges against currency debasement.
The Trump administration has also made attempts to address the ballooning debt. Efforts included the “Big Beautiful Bill Act,” aimed at saving $1.6 trillion over ten years. However, the initiative is projected to cost $3.4 trillion instead, further widening the deficit.
Bitcoin and Gold See Renewed Institutional Demand
Bitcoin and gold are getting more popular among investors as the U.S. debt continues to increase. The two assets are considered safe havens during economic stress. This move has recently been termed by JPMorgan as the “debasement trade,” referring to a strategy of hedging against the falling value of fiat.
Bitcoin surged to a new all-time high of $125,506, while gold reached a record $3,940 per ounce. These gains highlight growing institutional and retail demand for non-sovereign assets.
BlackRock CEO Larry Fink has acknowledged Bitcoin’s role as a global hedge against inflation and currency risk. Earlier this year, he suggested Bitcoin could reach $700,000 if concerns over fiat currency debasement intensify.
Ray Dalio, founder of Bridgewater Associates, has also been a proponent of hard asset diversification. He advises allocating 15% of investment portfolios towards Bitcoin and gold as the most effective risk management. Dalio argues that the two assets act as a hedge against mismanagement of money and high debts.
“Bitcoin’s fixed supply and decentralized design make it resilient to inflation,” Dalio said in July. “It’s an effective diversifier alongside gold in a world of rising fiscal risk.”
Related: BTC Surges to Record $125K Mark, Fueling $500K Price Ambitions
Global Debt Crisis Deepens
The U.S. is not alone in facing debt challenges. According to the Institute of International Finance, global debt reached a record $337.7 trillion in the second quarter of 2025. Nations across Europe and Asia are also increasing borrowing to fund growth and offset inflation.
Dalio noted that Western countries like the United Kingdom face similar “debt doom loop” risks. As national debts rise, currencies weaken, pushing investors toward Bitcoin and gold for protection.
The International Monetary Fund and several economists warn that the rising debt level in the world may result in slower economic recovery and increased costs of borrowing. Such circumstances would hasten the transition to decentralized and real-world assets. The surge in demand for Bitcoin and gold signals this shift.
