Bitcoin rose near $80,000, its strongest three‑day gain since 2023, after a period of market rebound.

The U.S. gross federal debt exceeded $40 trillion on August 18, according to Treasury data, and the Congressional Budget Office projects a $1.9 trillion deficit for fiscal 2026.

Robbie Mitchnick, head of digital assets at BlackRock, said that fiscal sustainability matters more for Bitcoin’s valuation than pending market‑structure legislation.

He added that investors concerned about the purchasing power of fiat currencies may increase exposure to assets outside the sovereign monetary system.

The CBO projects deficits of $1.9 trillion in 2026 and up to $3.1 trillion by 2036, while net interest payments reached about $970 billion in fiscal 2025.

Bitcoin’s price movement also reflected ETF inflows, short covering, a weaker dollar and shifts in Treasury yields, which together lifted the asset despite its higher volatility compared with gold.

BlackRock has described Bitcoin as a scarce, decentralized monetary alternative with return drivers that differ from stocks and bonds, and said regulatory clarity from the pending CLARITY Act could provide additional upside for the broader cryptocurrency market.

Analysts at Bernstein have noted that debt concerns could accelerate Bitcoin’s recovery, though their price targets remain forecasts rather than confirmed outcomes.

The asset already operates under an established regulatory framework, having received SEC approval for spot Bitcoin ETFs in January 2024 and being classified as a commodity by the CFTC.

The next developments will depend on Treasury borrowing plans, long‑term bond yields, continued ETF flows and Bitcoin’s behavior during potential market stress.