Bitcoin’s limited supply is rocketing its viability as a valuable hedge against the US dollar. In conversation with Coin Headlines, eToro analyst Simon Peters said that while historically Bitcoin adoption has historically been driven by retail investors, sustained increases in sovereign debt levels could act as a
sharper, more effective catalyst for broader institutional participation into the asset’s ecosystem over time.
The national debt of the U.S. stands at $38.43 billion as of Tuesday, January 13. This translates to $112,610 for every individual in the country, as per data by the Peter G. Peterson Foundation. Rising healthcare costs and inadequate revenues have been mentioned repeated across analysis reports as reasons for U.S.’ debt issue.
The situation has been drawing major flak on social media.
The eToro analyst has predicted that as governments continue to take on new debts – often to service existing obligations – the overall money supply remains elevated and may continue to grow.
“In this environment, scarce assets such as Bitcoin, gold and real estate tend to benefit, as fiat currencies gradually lose purchasing power relative to them. as fiat currencies gradually lose purchasing power relative to them,” Peters said.
Earlier this month, the U.S. national debt had hit a new ATH of $38.5 trillion despite the intense tariff war President Donald Trump initiated with multiple countries last year.
As per data by PIIE, the Cumulative tariff revenue for January–September 2025 had touched $178.8 billion.
Source: PIIE
The Kobeissi Letter has predicted that the total US debt will rise to $40.0 trillion as early as August this year. Others from the industry have also been posting similar statistics commenting on debt growth that U.S. faces.
“As government debt expands, attracting buyers may become more difficult or require higher yields to compensate for increased risk. Higher borrowing costs can compound debt problems further and increase the likelihood of policies that ultimately weaken the currency,” the analyst added.
Peters told Coin Headlines that looking ahead, expectations that interest rates will begin to fall over the course of this year and into next may also reduce the attractiveness of traditional fixed-income instruments such as U.S. Treasuries. This could encourage capital flows into alternative asset classes, including Bitcoin, as investors seek higher long-term returns.
At present, BTC is trading at $91,971 with a gain of under two percent.