$40 Trillion U.S. Debt Redefines Asset Pricing: Bitcoin and Gold in Lockstep Rally

In August 2026, global financial markets witnessed a striking co-movement in asset prices. Bitcoin briefly touched US$81,237 on August 25, breaking through the US$80,000 mark for the first time since mid-May, while international gold prices concurrently approached US$4,700 per ounce, posting a monthly gain of nearly 15% and heading toward its strongest monthly performance since September 1999. These two distinctly different assets rallied in tandem, both pointing to the same macro narrative — the reassessment of fiat currency credibility triggered by the U.S. national debt breaching the US$40 trillion threshold.

Common Source: The US$40 Trillion Debt Milestone

On August 18, 2026, the total U.S. federal government outstanding public debt surpassed the US$40 trillion mark. Of this, debt held by the public reached US$32.27 trillion, while intragovernmental holdings stood at US$7.78 trillion. Maya MacGuineas, President of the Committee for a Responsible Federal Budget, described it bluntly as an “ominous milestone.”

An even greater shock came from the policy front. On August 19, U.S. Treasury Secretary Bessent announced that the long-term Treasury buyback program would be at least doubled, raising the single-operation maximum from US$2 billion to US$4 billion. The market did not interpret this as mere liquidity support; instead, it heightened concerns over U.S. dollar creditworthiness and fiscal sustainability. Following the announcement, both gold and bitcoin surged sharply.