BlockBeats news, on October 3, according to Forbes, U.S. President Trump said in an interview with Time magazine that "a certain degree of inflation will also pay off the debt very quickly," triggering market discussions on the United States reducing its real debt burden through nominal economic growth and inflation.
The report pointed out that the scale of U.S. federal debt has exceeded 40 trillion U.S. dollars, more than doubling in the past decade, and interest payments have continued to increase after the Federal Reserve raised interest rates. Trump, U.S. Treasury Secretary Scott Bessent and Elon Musk have previously stated that technology-driven economic growth is an important way to solve debt pressure.
Meanwhile, Bitcoin prices are up about 300% since the 2023 lows, but are still about 30% below their 2025 high of $126,000. The market has recently refocused on "debasement trade," in which investors hedge against the risk of a decline in the purchasing power of legal currency by allocating assets such as gold and Bitcoin.
Forbes quoted Bitfire Research as saying that in the long term, the logic of Bitcoin as a tool to hedge against the depreciation of legal currencies still exists, but short-term prices may still be affected by interest rate policies and US dollar liquidity.
In addition, PCE data, the Fed's preferred inflation indicator, showed that U.S. prices rose 3.4% year-on-year, still higher than the Fed's 2% target level; the market expects the probability of keeping interest rates unchanged at the Fed's end-October meeting is about 70%.