US National Debt Nears $38 Trillion, Is BTC the Answer

• 22 October 2025
• |
• 09:48

The United States’ national debt is climbing at a pace that few could have imagined a decade ago. As of early October 2025, America’s total debt stands at approximately $37.88 trillion, growing by nearly $6 billion each day, that’s around $69,000 added every second.

In just one year, the country has accumulated an additional $2.2 trillion, translating to about $283,000 of debt per household. For everyday Americans, these numbers may feel abstract, but their impact is anything but. Rising debt means higher interest payments, potential tax increases, and a weaker dollar, all of which influence the prices you pay, the savings you hold, and the value of the money in your wallet.

The average interest rate on the federal government’s marketable debt has climbed to about 3.4%, forcing Washington to spend more than $240 billion in interest payments over the past 12 months. According to projections, interest costs could account for 14% of all federal spending by 2027, potentially crowding out essential programs such as healthcare and education. Even more worrying, roughly one-third of the nation’s debt will mature within a year, forcing the government to refinance it at higher rates.

Dollar Weakness and the Rise of Safe Havens

The U.S. dollar, once considered the strongest global currency, is now facing one of its toughest years since the 1970s. Down by more than 10% in 2025, the dollar has lost nearly 40% of its purchasing power since 2000. For many investors, that’s a clear sign to seek safety in assets that are harder to dilute such as gold and Bitcoin. These two assets have surged to record highs, with gold trading at $3,924 per troy ounce and Bitcoin surpassing $125,000 for the first time in history. Both have become symbols of financial protection in an era when traditional currency seems to be losing its value.

Analysts often describe this shift as a “flight to hard assets,” where people escape weakening currencies by investing in assets that are either scarce or decentralized. But what’s unusual about today’s environment is that gold and stocks are moving together, which is something rarely seen before. The correlation between gold and the S&P 500 reached an all-time high of 0.91 in 2024, showing that even risk assets might become safe havens.

The Global Shift to Alternative Assets

Gold’s value has risen by 47% in 2025 alone, and this has been driven not just by retail investors but also by central banks around the world. Nations such as China and India have collectively added more than 1,000 tons of gold to their reserves this year, reducing their exposure to the U.S. dollar. At the same time, the Federal Reserve’s recent interest rate cuts have weakened the dollar even further, fueling inflation and making Americans question how long their purchasing power can last. With inflation still hovering around 4%, and core inflation at 2.9%, it’s clear that the fight against rising prices is far from over.

The simultaneous rise of gold, Bitcoin, stocks, and real estate indicates that investors are anticipating a new monetary era that is fueled by persistent inflation, lower interest rates, and declining faith in fiat currencies. Many Americans now see these alternative assets as protection against political and fiscal uncertainty.

Gold, Silver, and Bitcoin Dominate Global Markets

Across global markets, gold, silver, and Bitcoin now rank among the world’s largest assets. Gold is valued at roughly $26 trillion, silver at $2.7 trillion, and Bitcoin’s market capitalization has hit around $2.5 trillion which is greater than most major corporations. These figures highlight a massive shift in how investors perceive wealth. Instead of trusting government-backed money, many now favor limited-supply, decentralized, or tangible assets that can’t be easily manipulated by policy changes.

Political Instability Adds Fuel to the Fire

Global politics are only making things more volatile. In Japan, the yen has weakened as new fiscal policies hint at more government spending. In Europe, the euro has slipped due to ongoing political unrest in France. Back home in the U.S., the federal government shutdown that began on October 1, 2025, has left 800,000 federal workers furloughed and another 700,000 working without pay. This shutdown has delayed vital reports, such as employment and inflation data, increasing uncertainty in financial markets. With Washington locked in political battles, many investors are losing faith in traditional systems and leaning toward self-sovereign assets like Bitcoin.

Bitcoin’s Dominance Over Traditional Markets

When it comes to performance, Bitcoin’s track record speaks for itself. Since 2020, the cryptocurrency has dramatically outperformed the S&P 500 and other traditional benchmarks. A $100 investment in Bitcoin in early 2020 would now be worth about $1,473, compared to just $210 if it were invested in the stock index. In 2025 alone, Bitcoin has risen 32%, while Ethereum has surpassed $4,600, helping the total crypto market cap reach $4.35 trillion. This growth reflects a broader shift toward digital assets as both a store of value and a response to inflation.