According to @KobeissiLetter, citing CRFB estimates, the House reconciliation bill is projected to increase U.S. public debt by $3.3 trillion over the next nine years, potentially rising to $5.2 trillion by the end of Fiscal Year 2034 if the provisions are made permanent (source: CRFB, via Kobeissi Letter, May 15, 2025). This significant rise in federal debt could increase inflationary pressures and weaken the U.S. dollar, creating a bullish narrative for cryptocurrencies like Bitcoin and stablecoins. Traders should monitor U.S. debt announcements and fiscal policy developments, as escalating debt levels may drive institutional and retail investors toward crypto assets as alternative stores of value.

According to The Kobeissi Letter, the recent sell-off in U.S. Treasuries highlights that foreign entities own $8.5 trillion or 33% of the total U.S. public debt. Japan remains the largest foreign holder with $1.08 trillion, while China follows as the second-largest. This shift in Treasury ownership can potentially influence cryptocurrency markets as investors seek alternative assets.

According to @KobeissiLetter, the US public debt net interest to GDP ratio has reached 4.6%, nearly double that of the second highest among the world's largest economies. This significant increase highlights the urgency for a more sustainable financial strategy. For traders, this may signal potential volatility in the US Treasury markets as the situation develops.

According to Miles Deutscher, the US public debt has reached a record $36 trillion, equating to 120% of the country's GDP. This significant debt-to-GDP ratio impacts financial markets by increasing uncertainty around fiscal policy and potential currency devaluation, which could influence trading strategies. Investors should consider the effects of potential inflation and monetary policy adjustments on their portfolios.