Zhitong Finance and Economics learned that in recent months, the growth rate of the debt burden in the United States has accelerated significantly, increasing by about $1 trillion almost every 100 days.
According to the U.S. Treasury Department, after briefly surpassing $34 trillion on December 29, U.S. debt has permanently crossed that threshold by Jan. 4. It reached $33 trillion on September 15, 2023 and $32 trillion on June 15, 2023, showing a clear acceleration trend. It is worth noting that before that, it took about eight months to go from $31 trillion to $32 trillion.
As of Wednesday (Feb. 28), U.S. debt was close to 34$4 trillion, which is money borrowed by the federal government to cover operating expenses. Michael Hartnett, investment strategist at Bank of America, believes that this 100-day growth trend will remain unchanged as the US debt rises from $34 trillion to $35 trillion.
"No wonder the 'debt devaluation' is trading near all-time highs of $2,077 an ounce and $67,734 for bitcoin," he wrote in a report released on Thursday. ”
Spot** is currently hovering around $2,084 an ounce, while Bitcoin has recently been around $61,443. Bitcoin outperformed February, making it its best month since 2020, briefly trading above $64,000 on Wednesday before retreating. Hartnett noted that crypto inflows** are about to have a "blowout year," with annualized inflows of $44.7 billion so far this year.
Moody's Investors Service downgraded its U.S.** outlook to negative from stable in November, given rising risks to U.S. fiscal strength.
"Against the backdrop of rising interest rates, there are no effective fiscal policy measures to reduce** spending or increase revenues," the agency said. Moody's expects the U.S. fiscal deficit to remain very large, significantly weakening debt sustainability. ”