Concerns over US fiscal health intensified after Strike noted on September 22 that even if the government spent the entire market capitalization of gold, the US would still be $8 trillion in debt. The observation landed as broader crypto markets showed mixed momentum, adding to anxiety about inflation and monetary policy and prompting traders to reassess positioning across risk assets.
By September 23, the debate sharpened as the US national debt reportedly exceeded $40 trillion. Michael Bucella, co-founder of Neoclassic Capital, said investors are increasingly looking beyond the dollar, with gold, the Swiss franc, and Bitcoin emerging as preferred hedges against currency depreciation. He noted that the rapid increase in US debt is pushing some investors to diversify portfolios away from dollar-denominated exposure.
Bucella also highlighted growth in Bitcoin-backed loan products in the US, which let BTC holders access liquidity without selling their assets. These mechanisms use Bitcoin as collateral, allowing investors to preserve exposure while meeting cash needs, though they carry risks such as additional collateral requirements or liquidation if Bitcoin's price declines.
Still, Bucella cautioned that Bitcoin retains its status as a risk asset and remains sensitive to global economic developments and macroeconomic conditions, unlike traditional safe havens such as gold. The rise in US debt has reignited debate over the dollar's long-term value, with Bitcoin's role continuing to be shaped by institutional demand and macro trends.
