Bitcoin’s recent rally is closely tied to mounting concerns over the U.S. debt burden, according to BlackRock head of digital assets Robbie Mitchnick. He said investor anxiety around debt and deficit levels is driving demand for Bitcoin and gold as hedge assets after federal debt surpassed $40 trillion on Aug. 18.
The U.S. debt figure has doubled since 2017, while annual interest costs are nearing $1 trillion and account for more than 14% of total federal spending. Bitcoin posted its strongest three-day gain since 2023 last week and was trading below $80,000 at the time of the report. Mitchnick also said the CLARITY Act matters less for Bitcoin than for other parts of crypto because Bitcoin already has broad regulatory recognition.
BlackRock Executive Links Bitcoin Rally to $40 Trillion U.S. Debt Milestone
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