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Breaking News: Will Trump Pardon Sam Bankman-Fried? Polymarket Odds Surge as Traders React to CZ’s Release
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Trump Says Crypto Could Pay $38 Trillion US Debt – How High Must Bitcoin Go?

Ash Tiwari
by Ash Tiwari
15 hours ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

US President Donald Trump recently stated that cryptocurrencies could be used to alleviate the ballooning US national debt, which has recently exceeded $38 trillion. Trump’s statement has triggered a global conversation about the role of digital assets, especially Bitcoin (BTC), in addressing the US’s debt crisis.

Can Bitcoin Be Used To Clear The US’ National Debt?

Speaking at a private conference, Trump said that crypto “has got a great future.” He hinted that maybe the US could pay off the $35 trillion debt in crypto. The president said:

I’ll write on a little piece of paper, $35 trillion in crypto – we have no debt. That’s what I like.

It should be noted that this is not the first time that Trump has alluded to the idea of using digital assets to wipe out the inflating American debt. In fact, Trump has been on record multiple times saying that his administration could use BTC to “save America.” 

Related Reading: BitMine Scoops Up More Ethereum Amid Market Slump, Holdings Surpass 3 Million ETH

This begs the question, how high will Bitcoin actually need to be to pay off the US’ national debt. Asset manager Fidelity has performed some calculations to arrive at an approximate BTC price that could, theoretically, do the trick.

According to calculations based on Treasury data and blockchain supply metrics, BTC’s circulating supply of 19.93 million BTC would need to increase significantly in value to pay off the massive $38 trillion debt.

Mathematically speaking, by dividing the US’s $38 billion in national debt by 19.93 million supply, one Bitcoin will surge to $1.9 million. At such a high price, BTC’s market cap would be roughly equal to the US’s total debt.

However, the US doesn’t own all the 19.93 million BTC. According to the latest data, the US only owns about 326,373 BTC, almost 1.6% of the cryptocurrency’s total supply, most of it acquired through seizures from criminal investigations.

If the US tried to pay off its debt only using the amount of BTC it currently holds, then the digital asset’s price could increase exponentially. Specifically, BTC could surge as high as $116.5 million, almost 1000-times more than its current trading price.

At such a price level, BTC’s total market cap would be around $230 trillion – a figure that is even higher than the world’s total GDP as of today. Any attempt to sell BTC at such a price would collapse its thin liquidity, resulting in a massive crash for the flagship cryptocurrency.

Are Institutions Aware Of BTC’s Potential?

While Bitcoin reaching a price tag of $116.5 million might sound impossible currently, recent BTC accumulation trends show that institutions are confident that the digital asset may still have a lot more room to grow.

Related Reading: Luxembourg Bets On Bitcoin As Sovereign Fund Adds 1% Exposure To BTC ETFs

Recent trading data from the US suggests that crypto transactions have witnessed a sharp uptick since Trump assumed the Presidency. At press time, BTC trades at $110,052, up 0.1% in the past 24 hours.

bitcoin
Bitcoin trades at $110,052 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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