US National Debt Surpasses $40 Trillion

The United States' gross national debt has ticked past $40 trillion, a milestone that has prompted warnings about the country's fiscal trajectory. The Treasury Department said the national debt was running at over $40 trillion as of Aug. 18, according to The Motley Fool. That figure is more than double its level in 2017.

The Times of India noted that it took just five months to add the last trillion dollars, underscoring the rapid pace of accumulation.

Debt-to-GDP Concerns

While the headline figure of $40 trillion is striking, analysts point to debt-to-GDP ratios as a more meaningful measure of fiscal health. The Congressional Budget Office (CBO) projects that debt held by the public will reach 101% of GDP this year and 120% by 2036, assuming current trends continue, as reported by The Motley Fool.

The Times of India reported that the CBO expects the debt to breach the post-war record of 106% of GDP within a few years. The Times of India also noted that of the $40 trillion, 8 trillion is money the government owes itself, while 3 trillion is owed to outside holders—roughly the size of the US's annual output.

The CBO projected in February 2026 that this year's deficit would reach 9 trillion, or 8% of GDP, according to The Motley Fool.

Implications for Bitcoin

Some analysts have suggested that the growing national debt could act as a tailwind for Bitcoin over the long term, citing the risk of currency inflation as a potential driver. The Motley Fool reported that Fidelity Digital Assets' research from March 2026 found that expansion of the global money supply could explain as much as 87% of Bitcoin's price variation over the prior 15 years.

However, the relationship is not tightly coupled. The Motley Fool noted that Bitcoin's price fell by 28% in the 12 months through Aug. 27, 2026. A follow-up report from Fidelity on Aug. 13, 2026, said the rolling 24-month correlation between Bitcoin and the global money supply had turned negative, according to The Motley Fool.