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Bitcoin tops $66,000 as US borrowing outlook nears $40 trillion
US gross federal debt stood at $39.489 trillion on July 15, with Treasury set to revise third-quarter borrowing on Aug. 3.
Bitcoin moved above $66,000 as expectations for increased US government borrowing put renewed focus on how rising Treasury supply could affect crypto liquidity, according to CryptoSlate.
The outlet cited data showing US gross federal debt reached $39.489 trillion on July 15, leaving roughly $511 billion before the $40 trillion threshold. Treasury’s July-to-September outlook currently projects $671 billion in privately held net marketable debt borrowing, based on a $950 billion end-of-September cash balance.
CryptoSlate said Treasury will revise its third-quarter borrowing estimate on Aug. 3 and publish its first estimate for October through December. It noted that the borrowing package due Aug. 5 will include auction and financing details across bills, notes, bonds, floating-rate notes, and inflation-protected securities, with a larger total potentially requiring private investors to absorb more government securities.
The report also linked potential rate effects to Bitcoin sensitivity, citing Federal Reserve research that a 1.0 percentage point increase in expected US debt relative to GDP can add about 2.0 to 3.0 basis points to the 10-year Treasury term premium. CryptoSlate said Bitcoin entered the week near $65,000 while the 10-year Treasury yield was around 4.60%, and that higher Treasury returns can raise the opportunity cost of holding a zero-coupon asset like BTC.
Latest closeBitcoin $66,747.44 ▲2.3%