Bitcoin Surges 23% as US Debt Crisis Fuels Crypto Rally: Weekly Roundup

Bitcoin posted its best weekly performance since March 2023, climbing more than 23% to trade around $77,559 after briefly topping $79,000 on Friday. The rally pushed BTC above its 200-day moving average for the first time since November 2025, a technical milestone widely interpreted as a signal of bullish momentum. Ethereum gained 31%, Solana rose 28%, and XRP surged an impressive 53%, while spot Bitcoin and Ether ETFs absorbed over $2.61 billion in combined inflows. Michael Saylor's Strategy holdings also crossed their $75,385 breakeven point, reinforcing renewed confidence across the market. Polymarket odds of Bitcoin reaching $90,000 before 2027 climbed to 48%, reflecting growing investor optimism that a new bull cycle may have begun.

The catalyst behind the rally was escalating concern over US fiscal policy. The national debt crossed $40 trillion this week, with annual interest payments now surpassing Medicare and ranking as the government's second-largest expense behind Social Security. The Kobeissi Letter attributed gains in both precious metals and crypto to a combination of inflation, deficit spending, and Treasury policy, including the department's pledge to at least double certain debt buyback operations to $4 billion. Publicly traded crypto-related firms, including Canaan, Metaplanet, Coinbase, and Robinhood, all posted double-digit share price gains in response.

Bridgewater Associates founder Ray Dalio has recommended investors allocate roughly 15% of their portfolios to gold and a small portion to Bitcoin as a hedge against looming debt-related fallout. Dalio warned that the US could face a debt crisis within three years if structural fiscal reforms are not implemented. His endorsement adds institutional weight to the narrative that Bitcoin is increasingly viewed as a store-of-value asset alongside traditional safe havens. With macro pressure mounting and technical indicators turning bullish, market participants are watching closely to see whether this week's momentum marks a durable regime shift rather than a short-lived squeeze.