The U.S. national debt has surged to a record $38.5 trillion, with over 70% owed to domestic lenders and the remainder to countries like Japan, China, and the UK. This debt level, exceeding the U.S. GDP of approximately $30 trillion, results in a debt-to-GDP ratio of over 120%. The increase is attributed to pandemic-related spending and long-term fiscal policies. The high debt levels are seen as bullish for Bitcoin and gold, as governments often pressure central banks to lower interest rates to manage debt servicing costs. This environment typically benefits assets like Bitcoin and gold, which are perceived as hedges against currency debasement. Analysts suggest that Bitcoin may follow gold's upward trajectory, driven by fears of inflation and currency depreciation.