Worsening US debt outlook seen more in gold and bitcoin than in bonds
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Concerns about the rapidly rising US debt and deficit have led to increased demand for gold and bitcoin as hedges against inflation and the depreciating US currency. The US budget deficit widened to $1.7 trillion in fiscal year 2023 and is projected to reach $2.6 trillion by 2034. US government debt held by the public is on track to reach a record 106% of GDP in 2028. The unchecked growth of US government debt has boosted demand for bitcoin and gold. The rising debt and deficit is a concern for investors, as it is happening during a period of full employment. The worsening fiscal situation in the US may lead to policies such as yield curve control to prevent a debt crisis. However, Treasury market indicators currently do not reflect a worsening fiscal outlook. Despite the concerns, Treasury investors still see the dollar and Treasuries as relatively safe assets. Bitcoin has also been buoyed by new ETFs and an upcoming halving, while gold is being driven by expectations of central bank rate cuts and diversification by foreign central banks.

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https://timesofindia.indiatimes.com/business/international-business/worsening-us-debt-outlook-seen-more-in-gold-and-bitcoin-than-in-bonds/articleshow/109463986.cms