# America's $40 Trillion Debt and Bitcoin

> U.S. debt hitting $40 trillion doesn't boost or hurt Bitcoin.
- Title: America's $40 Trillion Debt and Bitcoin · Yahoo Finance
- Summary: U.S. debt hitting $40 trillion doesn't boost or hurt Bitcoin. The $40 trillion U.S. debt milestone has minimal impact on Bitcoin prices as liquidity and real…
- Keywords: us debt, bitcoin, treasury bonds, real yields, nasdaq, motley fool, crypto, debt crisis, business, finance, America's, Trillion
- Source: Yahoo Finance — https://finance.yahoo.com/markets/crypto/articles/americas-40-trillion-debt-load-155300048.html
- Published: 2026-09-17T15:53:00+00:00
- Read time: 1 min
- Topics: us debt, bitcoin, treasury bonds, real yields, nasdaq, motley fool, crypto, debt crisis, business, finance
## U.S. debt hits $40 trillion
The national debt reached $40 trillion in August, up from $36 trillion a year earlier and $19 trillion a decade ago.
## Debasement trade theory
Crypto investors believe rising U.S. debt boosts Bitcoin as more money circulates, weakening the dollar and strengthening inflation hedges.
## Bitcoin rallies in August
Bitcoin climbed 23% in late August, reaching high $70,000s after a sharp three-day move since 2023.
## Weak correlation with gold
The 90-day correlation between Bitcoin and gold hit a multi-year high of 0.5, but this is a weak statistical relationship.
## Bitcoin behaves like risk asset
Bitcoin sold off more sharply than stocks during the 2020 and 2022 crises, showing it's a risk asset when markets need liquidity.
## Real yields drive Bitcoin rally
Liquidity and real yields, not U.S. debt, drove Bitcoin's August rally as Treasury bonds offered safer returns.
## Debt milestone takes credit
The $40 trillion debt milestone appeared late in the Bitcoin rally, taking credit for gains that were actually driven by liquidity and real yields.
## Key takeaway

The $40 trillion U.S. debt milestone has minimal impact on Bitcoin prices as liquidity and real yields drove recent gains.