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MuskINC
MuskINC
August 22, 2026

US national debt just crossed 40 trillion dollars. Bitcoin is up 22 percent this week. Are these two facts connected?

Tuesday August 19 2026: US government debt hit 40.05 trillion dollars for the first time. Wednesday August 20: Treasury announced it would double long-term debt buybacks. Yields dropped. Thursday August 21: Bitcoin posted a 22 percent weekly gain. Its best week in this entire cycle. The debt number was barely reported. The Bitcoin rally was everywhere. Arthur Hayes predicts Bitcoin hits 1 million dollars by 2028 specifically because of US debt dynamics. Michael Saylor has been buying Bitcoin every week for years on the same thesis. The 40 trillion dollar number is not a coincidence in the same week Bitcoin had its best performance of the cycle. Or is it?

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kumar007kumar007· Aug 22

The mechanism is specific. More debt means more eventual monetization. More monetization means more dollar debasement. More debasement means fixed supply assets like Bitcoin and gold become more valuable relative to the dollar over time. This is not a conspiracy theory. It is the arithmetic of the US fiscal situation playing out exactly as the Bitcoin bulls said it would.