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The US national debt has reached a record $39.5 trillion, adding momentum to the argument that Bitcoin’s fixed supply could make it an increasingly attractive hedge against long-term currency debasement.
Federal debt has risen 167% since 2011, when it stood at $14.79 trillion. It increased to $26.94 trillion in 2020, crossed $30 trillion in 2022 and reached $37.64 trillion by the end of 2025.
The latest total equates to approximately $115,000 per person and $292,000 per US household. Debt has reportedly grown by about $2.8 trillion over the past year, equivalent to roughly $7.7 billion per day.
While the milestone does not automatically translate into higher cryptocurrency prices, it reinforces one of Bitcoin’s central investment narratives: governments can continue issuing debt and expanding the money supply, but no more than 21 million BTC can ever exist.
The cost of servicing US debt is becoming almost as important as the overall balance. Net federal interest expenditure is projected to approach $1.04 trillion during the 2026 fiscal year, representing close to 14% of total government spending.
Although households do not receive a direct bill for federal borrowing, the effects can reach consumers through higher borrowing costs, inflation and reduced fiscal flexibility.
US National Debt
2011: $14.79T
2012: $16.06T
2013: $16.73T
2014: $17.82T
2015: $18.15T
2016: $19.57T
2017: $20.24T
2018: $21.51T
2019: $22.71T
2020: $26.94T
2021: $28.43T
2022: $30.93T
2023: $33.17T
2024: $35.46T
2025: $37.64T…— Watcher.Guru (@WatcherGuru) July 19, 2026
Heavy government borrowing competes with businesses and households for available capital, potentially putting upward pressure on mortgage, automobile and credit-card rates.
Meanwhile, rising interest expenditure leaves less money available for infrastructure, public services or tax reductions.
A large debt burden can also create incentives for policymakers to tolerate higher inflation because rising prices reduce the real value of existing liabilities. However, inflation simultaneously erodes the purchasing power of household savings and wages.
Bitcoin advocates see the growing debt total as evidence supporting the cryptocurrency’s scarcity proposition.
Unlike the US dollar, Bitcoin operates under a programmed supply schedule with a maximum issuance of 21 million coins. No government or central bank can create additional BTC to finance spending, service liabilities or respond to an economic crisis.
This distinction has helped position Bitcoin as a potential “debasement trade,” alongside traditional scarce assets such as gold. Some investors have consequently shifted from treating BTC exclusively as a speculative asset to using it as a long-term hedge against declining fiat purchasing power.
However, Bitcoin has not consistently behaved like a safe haven. Its price frequently falls alongside technology stocks and other risk assets when financial conditions tighten. Higher interest rates caused by fiscal or inflation concerns could therefore pressure BTC in the short term, even if the longer-term debt narrative remains supportive.
US Senator Cynthia Lummis argued that the government could use Bitcoin as part of a long-term strategy to address its debt burden.
Lummis said acquiring approximately 1 million BTC, more than 5% of Bitcoin’s maximum supply, and holding it for 20 years could offset between one-third and one-half of the national debt. She suggested that a larger holding could theoretically erase the debt if Bitcoin appreciated sufficiently.
Her proposed BITCOIN Act calls for the US to accumulate 1 million BTC over five years through purportedly budget-neutral measures, including Federal Reserve remittances and the revaluation of gold certificates.
The strategy remains highly speculative. Bitcoin has experienced repeated declines exceeding 50%, while large government purchases could distort prices and expose public finances to substantial volatility.
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