Bitcoin Tracks Gold as US Debt Tops $40 Trillion

US federal debt surpassed $40 trillion for the first time in August 2026, sharpening concern over persistent deficits, rising interest costs and the long-term purchasing power of the dollar. Grayscale Research said those pressures are reviving the “debasement trade,” in which investors seek scarce assets that cannot be readily diluted. Bitcoin and Ether are increasingly being considered alongside gold as potential hedges against inflation and fiscal deterioration.

Grayscale said Bitcoin’s 90-day correlation with gold has climbed above 50%, indicating the two assets are increasingly responding to the same macroeconomic forces. The milestone in US debt has reinforced demand for assets with constrained supply as investors reassess sovereign risk and currency exposure. The firm said the convergence may signal a broader market-regime shift, rather than a temporary bout of synchronized trading between crypto and precious metals.