As debt snowballs grow larger, the narrative space for BTC is expanding in tandem.

Bitwise in the new report pointed out that concerns over government debt could increase the undervaluation of Bitcoin. By 2026, public and corporate borrowing is expected to reach approximately $29 trillion, a 17% increase from 2024, with about 78% used for refinancing existing debt. If yields remain high, sovereign debt pressure could push investors toward Bitcoin, especially in the context of Japan's public debt approaching 230% of GDP.