U.S. Treasury On Alert: Is The Crypto Rush Imminent?

The United States is preparing to issue more than $31 trillion in debt in 2025. This inevitably creates tensions in the markets. According to cryptography experts, this situation could benefit crypto-assets. The shock promises to be violent!

A colossal debt weighing on the markets and benefiting crypto

The US Treasury plans to flood the financial market with a historic issuance of bonds exceeding $31 trillion. This represents 109% of the projected GDP for 2025 and 144% of the money supply (M2). Such an overload could push yields upward. But that’s not all! It would also harm risk assets, including cryptocurrencies.

Paradoxically, this pressure could nevertheless boost the appeal of certain crypto assets. This notably refers to BTC, often seen as a store of value independent of central banks.

If rates explode, the FED will indeed have to adjust its monetary policy. It will choose:

• either a sudden pivot;
• or a liquidity injection.

In either case, the crypto market could come out ahead.

Debt monetization: a scenario that could propel crypto

Faced with the scale of financing needs, some crypto analysts fear massive recourse to debt monetization. The concept is simple: turn on the printing press to avoid a budget crisis. This scenario would fuel fears of prolonged inflation. Which would further weaken the dollar.

In such a context, crypto-assets appear as a credible alternative for investors wishing to hedge against monetary depreciation. The bitcoin, in particular, could be seen as a protection against the loss of purchasing power of fiat currencies.

The scale of bond issuances will indeed force the FED to choose between stability and inflation. In this sense, crypto could once again benefit from the macroeconomic disorder.

2025 thus promises to be a decisive year for American debt… and for crypto. Between inflation, monetary uncertainty, and huge financing needs, crypto-assets could become a rational choice to diversify one’s portfolio.