US federal debt nears a record $40 trillion. Here's the debasement-trade argument for bitcoin and gold, and why the price hasn't followed
- US federal debt is approaching $40 trillion, prompting a renewed 'debasement trade' argument for Bitcoin and gold as hedges against dollar devaluation.
- The argument is supported by significant debt growth, rising interest expenses, and prominent investors, but current market prices for Bitcoin and gold have not reflected this thesis, as they are down from their peaks.
- The price action is currently being influenced more by Federal Reserve policy and real yields than by the debt trajectory, suggesting the 'debasement trade' is a thesis awaiting a catalyst rather than an active trend.
Topics: Public debt, Asset types, Market cycles macro sensitivity, Tokenized us treasuries, Financial instruments, Interest rate sensitivity
Tags: #usdebt #bitcoin #gold #debasementtrade #federaldebt #dollardevaluation #realyields #federalreserve #treasurydebt #macroeconomics