Key Insights: Crypto news: U.S. debt topped $40T as real 30-year Treasury yields neared 3%. Grayscale says rising U.S. debt could increase demand for BTC, ETH, and ZEC. Ray Dalio warns a U.S.
Crypto news turned toward Washington after Grayscale linked rising U.S. debt and Treasury buybacks to renewed interest in crypto assets. The firm said unchecked government borrowing can weaken credibility in fiat currencies and increase demand for alternative stores of value.
Grayscale identified Bitcoin, Ethereum, and Zcash as cryptocurrencies that could benefit from what it calls the “debasement trade.” The warning follows U.S. public debt surpassing $40 trillion and long-term real Treasury yields climbing near 3%.
The U.S. Treasury recently announced larger buybacks of long-maturity notes and bonds in the open market. Those purchases retire securities after acquisition, reducing the risk-adjusted supply of Treasury debt.
Crypto news – Grayscale warns U.S. debt could push investors to BTC, ETH | Source: X Grayscale said the policy addresses rising yields without resolving structural budget deficits, driving continued government borrowing. The Treasury announced the expansion as federal public debt crossed $40 trillion for the first time.
A Bloomberg and Grayscale chart shows U.S. public debt rising almost continuously since the global financial crisis. Debt stood below $10 trillion in 2006 before increasing during later downturns.
The chart shows debt growth accelerating after 2020 and continuing through 2026 toward the $40 trillion threshold. Meanwhile, the real 30-year Treasury yield rose to nearly 3% on a 30-day average.
Source: X Long-term real yields mostly ranged between about 0.5% and 2.5% before 2020. They then fell below zero during the pandemic before rebounding sharply in 2022. By 2026, real 30-year yields had reached levels close to 3%. The crypto fund issuer contrasted that shift with stronger private borrowing linked to the current artificial-intelligence capital-expenditure cycle.
Grayscale said the post-financial-crisis housing slump once reduced private borrowing while government debt continued expanding. The firm now sees heavier private borrowing alongside sustained federal borrowing, adding pressure to long-term interest rates.
Its research argues that persistent debt growth can weaken the credibility of fiat currencies and spur the adoption of alternative stores of value. Crypto news around the report centered on Bitcoin, Ethereum, and Zcash because Grayscale named all three directly.
The company described Treasury buybacks as a response to higher borrowing costs rather than a solution to structural deficits. Its key takeaway said unchecked debt growth may push investors toward assets used as alternative stores of value.
Grayscale included physical gold alongside selected cryptocurrencies when outlining that possible shift in investor behavior. However, the firm presented that outcome as its view rather than a guaranteed market response.
Ray Dalio separately warned that the United States could face a major debt crisis within several years. In a post, he compared the potential disruption to an economic heart attack.
Dalio cited a $4 billion Treasury buyback, rising bond yields, dollar weakness, and Japanese selling of U.S. bonds. He estimated the crisis could arrive in three years, give or take two, without a policy change.
Dalio said the U.S. could record a budget shortfall of about $2 trillion this year. The Congressional Budget Office estimates the 2026 deficit at about 6% of GDP, or $1.9 trillion.
Dalio proposed reducing that gap toward 3% of GDP through spending cuts, lower rates, and higher tax revenue. He said those measures should occur together to avoid excessive pressure from any single adjustment.
The post Crypto News: Grayscale Warns U.S. Debt Crisis Could Push Investors Toward BTC, ETH, and ZEC appeared first on The Coin Republic.
