USAPublic debt in Turkey reached 38.5 trillion dollars in the first days of 2026, reaching the highest level in the country’s history. Total liability to domestic and external lenders American economyIt surpassed the annual production capacity of . As the ratio of debt to national income exceeds 120 percent, financial markets read this picture not only as a financial risk but also as a structural signal shaping asset prices. Especially Bitcoin Alternative investment instruments such as and gold have come to center stage again in this environment.
Debt Dynamics of the USA
While the total debt of the USA reaches 38.5 trillion dollars, approximately 70 percent of the burden belongs to creditors within the country. is located. The remaining part is first Japan, Chinese And United Kingdom including in the hands of foreign investors. Another factor that draws as much attention as the size of the debt is the picture that emerges when this figure is compared with the production capacity of the economy. Against a gross domestic product of nearly $30 trillion, the debt level translates into over $120 of debt for every $100 of income.
The current borrowing momentum has accelerated mainly with the aggressive fiscal expansion policies implemented during the pandemic period. In the following years, infrastructure investments, defense expenditures and social programs permanently increased the debt stock. Annual interest payments now exceed $1 trillion, outstripping the defense budget. While this picture brings the financial sustainability debates to the agenda again, the Fed’s monetary policyIt also narrows the maneuvering area of the
As the debt level increases, it becomes inevitable for the Treasury to borrow at higher interest rates. While long-term bond yields remain under upward pressure, political and economic expectations to keep short-term interest rates low are increasing. As a result, the US yield curve steepens significantly and financial assets are repriced according to this new equilibrium.
Bitcoin, Dollar and “Financial Domination” Debate
In an environment where the US debt is constantly increasing, the indirect pressure of governments on central banks has become more visible. US President Donald TrumpWhile he openly stated that interest rates should be rapidly reduced to 1 percent, the view that a low interest policy would limit debt service costs gained strength. This approach is considered a sign of the process called “financial dominance” in the markets.
Former Treasury Secretary and Fed Chairman Janet YellenHe pointed out that increasing debt may force monetary policy to ease the interest burden rather than control inflation. In such an environment, central banks play the role of supporting market liquidity by purchasing short-term bonds. According to analysts, this situation results in the suppression of short-term interest rates while long-term interest rates rise.
For the cryptocurrency market, the picture is clearly positive. Bitfinex analysts stated that the steepening yield curve and structurally weaker dollar reward assets with real value. GoldThe rise of the Turkish Lira, up to 60 percent last year, is seen as a concrete reflection of concerns about the depreciation of the dollar. As in historical examples, the decrease in the purchasing power of the currency directs investors to alternatives. Market actors implement a similar pricing process. Bitcoin They agree on the view that it will occur at an accelerated pace.
