US Debt Rises to $36.6 Trillion: Could Recession Warnings Push Bitcoin Back to $95K?
US Debt Hits $36.6 Trillion — Will Bitcoin Drop to $95,000?
The US national debt just jumped by $367 billion in one day, reaching a record high of $36.6 trillion. This happened after President Donald Trump approved a bill that raised the debt ceiling by $5 trillion. This has raised concerns about how the economy — and Bitcoin — might be affected.
Is a Recession Coming?
Some financial experts are warning about a possible recession. Kurt S. Altrichter, founder of Ivory Hill Wealth, pointed out that the number of new single-family homes available is close to a 10-month supply. This level has usually happened during or just before past recessions.
He says the housing market is weakening not just because of high interest rates, but because people simply aren’t buying — something he calls “demand evaporation.”
What Does This Mean for Bitcoin?
If the economy slows down, risky investments like Bitcoin could take a hit. When people get nervous, they often move their money into safer assets like cash or short-term bonds.
However, not everyone thinks this is bad news for crypto.
Could This Be Good for Bitcoin Long-Term?
Jack Mallers, CEO of Strike, believes the US will avoid defaulting on its debt by printing more money — a process known as "monetary expansion." He argues this could actually be a great setup for Bitcoin, since it’s seen as protection against inflation and money printing.
The Fed, Trump, and Market Moves
Some traders think Bitcoin’s recent jump above $112,000 isn’t because of debt worries or recession fears, but because they expect the Federal Reserve to change its policy soon.
There’s even talk that Trump might try to replace the current Fed Chair, Jerome Powell, with someone more likely to lower interest rates. That kind of move could support both stocks and crypto prices.
Bitcoin Still Moves With the Stock Market
Even though interest in Bitcoin ETFs is growing, BTC still behaves a lot like traditional stocks. It currently has a 68% price correlation with the S&P 500 — meaning when stocks go up or down, Bitcoin often does too.
Trade tensions are also a concern. New US tariffs could hurt big tech companies like Nvidia, which recently became the world’s most valuable company. If tech stocks fall hard, Bitcoin might drop too — possibly down to $95,000 in the short term.
Bottom Line
Despite short-term risks, many still believe Bitcoin could hit a new all-time high in 2025. But for now, traders are being cautious, especially as the global economy, tech stocks, and US politics all hang in the balance.
