Bitcoin News Today: U.S. Debt Hits $37 Trillion as Bitcoin Price Outlook Rises With Monetary Expansion

The U.S. federal debt has surpassed a record $37 trillion, intensifying speculation that the growing deficit and associated money supply expansion could drive Bitcoin to $132,000 by 2025. The milestone was triggered by legislative measures including the “One Big Beautiful Bill Act,” signed into law by Donald Trump on July 4 [1]. The act, intended to cut federal spending by up to $1.6 trillion, has instead been cited by critics as a catalyst for a larger deficit. Representative Thomas Massie highlighted the debt milestone in a social media post, signaling growing public concern over fiscal responsibility [1].

Analysts argue that rising deficits could lead to looser monetary policy, including potential resumption of quantitative easing, a mechanism used by central banks to inject liquidity into the economy [1]. This, in turn, could drive up the M2 money supply—another factor closely linked to Bitcoin price trends. U.S. debt has surged from $26.7 trillion in 2020 to over $37 trillion in just five years, a 38% increase [1]. During the same period, Bitcoin’s price rose over 925%, with some observers noting a “direct correlation” between the two [1].

Ryan Lee, chief analyst at Bitget, suggested that as the U.S. government allocates more funds to service its debt, the financial system will be increasingly influenced by the resulting monetary expansion [1]. He emphasized that “the more the debt grows, the higher the likelihood of BTC price soaring to new highs” [1]. The potential for Bitcoin to act as a hedge against inflation and fiat devaluation is gaining traction among institutional investors and financial commentators [1].

Jamie Coutts, chief crypto analyst at Real Vision, estimated that the continued growth in the M2 money supply could push Bitcoin above $132,000 before the end of 2025 [1]. This projection is based on historical correlations between fiat money supply and Bitcoin’s valuation. However, it remains more conservative compared to predictions by Arthur Hayes, co-founder of BitMEX, who suggested Bitcoin could reach $250,000 if the Federal Reserve resumes quantitative easing amid inflationary pressures [1].

The potential for Bitcoin to serve as a solution to the U.S. debt problem is also being discussed, with Lee noting that the digital asset could be explored as a tool to stabilize the national financial system [1]. Meanwhile, concerns over excessive government spending and its long-term economic consequences continue to draw public and political scrutiny [1].

Source: [1] Title: Trump's 'big, beautiful bill' pushed US Debt to record $37T. URL: https://cointelegraph.com/news/trump-big-beautiful-bill-us-debt-record-37t-congressman-massie