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      US National Debt Exceeds $40 Trillion, Boosting Bitcoin and Gold Investments

      The United States government has surpassed a significant financial milestone, with its national debt exceeding $40 trillion as of August 2026. In response to this growing debt, the Treasury Department has announced plans for extensive long-term debt buybacks. This development has led to a decline in Treasury prices and a weakening of the US dollar, prompting investors to seek refuge in traditional safe-haven assets such as Bitcoin and gold.

      In late August 2026, Bitcoin experienced a notable surge, climbing approximately 23% to surpass $77,000, while gold prices also increased in response to the dollar's decline. By early September, the correlation between Bitcoin and gold reached multi-year highs, indicating a strong relationship between the two assets as investors look for protection against currency debasement.

      Market sentiment regarding these assets is reflected in options trading data. Gold has seen a significant bullish sentiment, with a ratio of over 5:1 in favor of call options on SPDR Gold Shares. In contrast, Bitcoin ETF options show a more balanced distribution of bullish and bearish positions, highlighting the differing levels of institutional comfort with each asset.

      Recent research suggests that a blended investment strategy incorporating both Bitcoin and gold could yield better risk-adjusted returns compared to traditional stock-and-bond portfolios. This shift in investment strategy is evident in the increased inflows into exchange-traded funds for both assets, as institutional investors adjust their portfolios amid ongoing fiscal challenges.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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