According to The Kobeissi Letter, the US budget deficit has averaged 9% of GDP over the last five years, with the most recent 12 months alone seeing a budget gap of 7% of GDP, surpassing levels seen during the 2001 and 1980s recessions (source: The Kobeissi Letter, May 26, 2025). This persistent fiscal imbalance increases concerns about US debt sustainability and could drive volatility in the US dollar, which is highly relevant for crypto traders. Historically, large deficits and expanding government spending have led investors to seek alternative assets, such as Bitcoin and Ethereum, as a hedge against potential dollar depreciation and inflation. Traders should monitor capital flows and the correlation between US fiscal policy and crypto market performance, as further deficit expansion may support bullish momentum for major cryptocurrencies.