U.S. Debt Hits $39.7 Trillion as Debasement Trade Gains Attention

The U.S. federal debt reached a record $39.7 trillion on Friday and has been rising by about $7 billion per day, according to data from the U.S. Treasury Department. According to Foresight News, LondonCryptoClub founder said the pace supports the so-called debasement trade, in which investors bet on fiat currency weakness and move into scarce assets such as Bitcoin and gold. Apollo chief economist Torsten Slok previously warned in a blog post that the U.S. debt-to-GDP ratio has exceeded 120%, leaving limited fiscal room. He said that if a recession hits, the Federal Reserve may be unable to cut rates as aggressively as before because doing so would add to inflation and push bond yields lower. Bitcoin was trading at about $65,221.50, while Ether outperformed Bitcoin, with the ETH/BTC ratio moving above its 100-day and 200-day moving averages for the first time since the start of this year's bear market.