As U.S. Debt Nears $38 Trillion, Investors Rush to Bitcoin and Gold

America’s national debt has climbed to an eye-watering $37.9 trillion, growing by roughly $69,890 per second — or $6 billion every day, according to the U.S. Congress Joint Economic Committee. The pace of this increase is alarming investors and economists alike, with projections showing the total figure could exceed $38 trillion within the next 20 days.

U.S. Representative Keith Self sounded the alarm on Friday, warning that the national debt could hit $50 trillion within a decade if immediate fiscal reforms aren’t introduced. “Congress must act now — demand fiscal responsibility before the gradual slide becomes a sudden collapse,” he urged.

The mounting debt crisis has sparked renewed interest in safe-haven assets such as Bitcoin and gold, which investors view as hedges against a weakening U.S. dollar and inflationary pressures. The trend, often dubbed the “debasement trade,” has accelerated sharply in recent weeks.

Bitcoin and Gold Hit Record Highs

Last week, JPMorgan reaffirmed its stance on Bitcoin and gold as prime assets to protect against currency debasement. The statement coincided with Bitcoin reaching a record $125,506 on Saturday and gold touching $3,920 on Sunday — both marking historic highs.

Bitcoin’s appeal lies in its fixed supply of 21 million coins and decentralized structure, qualities that have increasingly drawn institutional investors. BlackRock CEO Larry Fink, once a Bitcoin skeptic, acknowledged in January that Bitcoin could climb as high as $700,000, driven by “global currency debasement fears.”

Meanwhile, Ray Dalio, founder of Bridgewater Associates, advised investors to allocate 15% of their portfolios to hard assets like Bitcoin or gold to optimize long-term returns. Dalio noted that this isn’t just a U.S. issue, warning that nations like the U.K. are also stuck in a “debt doom loop,” making digital and tangible assets more attractive as global hedges.

Global Debt Hits New Record

The U.S. fiscal challenge reflects a broader global pattern. A recent Reuters report revealed that global debt reached $337.7 trillion by the end of the second quarter — the highest in history — driven by sustained quantitative easing and a softening dollar.

The Trump administration has prioritized deficit reduction, bringing in Elon Musk earlier this year to advise on government efficiency, reportedly saving $214 billion. In July, Trump signed the “Big Beautiful Bill Act,” aimed at cutting $1.6 trillion in federal spending. 

However, implementing the measure has paradoxically pushed the national debt past $37 trillion, with an additional $3.4 trillion in costs expected over the next decade.