The incoming US administration just announced plans for a substantial defense budget increase next year. We're talking about jumping from $901 billion in 2026 to $1.5 trillion in 2027—that's roughly a 66% spike in military spending.

Why should crypto investors care? Massive government spending like this typically influences inflation expectations, interest rate policies, and overall macroeconomic volatility. When defense budgets expand aggressively, it often signals hawkish fiscal policies and can impact asset valuations across markets, including crypto. The trajectory of these spending decisions ripples through currency strength, bond yields, and risk sentiment—all factors that historically correlate with digital asset performance.