Recently, there has been a lot of discussion about the world selling off US debt. If this trend continues, what kind of situation might emerge?

First, US bond yields will rise even faster. The basic logic is supply and demand—if you want to attract buyers, interest rates must rise accordingly. As a result, the cost for the US to issue new debt to pay off old debt will become more apparent—interest expenses will become an increasingly heavy burden on the fiscal budget.

Second, the pressure for the US dollar to depreciate will intensify. US bonds are an important support for dollar assets; if no one wants them, the attractiveness of the dollar will naturally decline. Institutions and individuals holding dollar cash may become more proactive in seeking exits—whether by exchanging for other sovereign currencies or seeking alternative assets.

For the crypto market, this could actually be a positive. Historically, whenever the Federal Reserve faces fiscal pressure, it considers more easing policies, and this environment has been proven to stimulate demand for non-sovereign assets like Bitcoin and Ethereum. The performance of risk assets often benefits.

But don’t be too optimistic. If US debt truly loses its appeal, the pricing logic of global risk assets will be reshaped, and volatility will definitely increase. This is a double-edged sword.