According to The Kobeissi Letter, global debt surged by $7.5 trillion in Q1 2025, reaching a record $324 trillion, as reported by IIF data. Emerging markets contributed to 50% of this increase, with their total debt hitting an all-time high of $106 trillion. China was identified as the main driver behind the debt escalation. For crypto traders, these debt levels signal heightened financial instability and may increase demand for decentralized assets like Bitcoin as a hedge against fiat currency devaluation and systemic risks, especially in emerging markets. (Source: The Kobeissi Letter, IIF data, May 12, 2025)