U.S. debt surpasses $38 trillion, annual interest burns $1.2 trillion: What does this mean for digital assets?

[Crypto World] On December 5th, the US Treasury released a set of figures: the outstanding federal debt (including short, medium, and long-term treasuries) had already surged to $30.2 trillion in November. If you include internal accounts like Social Security funds, the total debt has surpassed $38.4 trillion. Even more staggering is the annualized interest expense—$1.2 trillion.

Simply put, high interest rates have collided with massive debt, and the interest itself is quickly becoming a “second fiscal hole.” What does this mean? The Fed’s ability to maintain high rates over the long term is actually being squeezed. In the medium to long term, this is generally positive for valuations of US stocks, gold, and major digital assets—but don’t celebrate too soon, as volatility will also intensify.

If you’re investing in US stocks, Hong Kong stocks, or spot and derivatives of digital currencies using USDT, it’s recommended to consider the US debt cycle and interest rate trends as your long-term “underlying logic.” The trend may be optimistic, but don’t forget to diversify and manage your positions—when short-term sentiment hits, blindly leveraging up could lead to disastrous losses.