World Governments Are Issuing Extra Debt Than Ever, Will Bitcoin Profit?

“World governments are issuing extra debt than ever,” commented the Kobeissi Letter over the weekend.

World sovereign bond issuances hit a document $18 trillion final yr, and $16 trillion of that debt was issued by developed nations.

Moreover, international authorities bond issuance has almost doubled since 2019 on an unsustainable debt trajectory, it famous.

“Traditionally excessive public spending on social applications and protection, new tax and spending insurance policies, in addition to elevated rates of interest, have been behind this large surge.”

World governments are issuing extra debt than ever:

World sovereign bond issuances hit a document ~$18 TRILLION in 2024.

~$16 trillion of debt was issued by developed nations, and ~$2 trillion by rising market economies.

World authorities bond issuance has almost DOUBLED… pic.twitter.com/X0QxXwtdIo

— The Kobeissi Letter (@KobeissiLetter) June 7, 2025

Extra Debt Extra Bonds

Authorities bonds are a manner for nations to lift cash by issuing interest-earning debt securities to finance public spending.

As debt surges, extra of it must be refinanced, which suggests extra bond consumers are wanted, which places strain on the bond markets.

On June 6, the Monetary Instances reported that investor demand for long-term authorities debt is weakening, as evidenced by latest auctions of 20-year bonds in Japan and the US, which have been poorly obtained, triggering sharp worth drops and rising yields.

Distinguished traders reminiscent of BlackRock’s Larry Fink and billionaire hedge fund supervisor Ray Dalio warned of unsustainable deficits, particularly within the US, which is contemplating a $2.4 trillion debt improve, prompting fears of a path to insolvency.

Lengthy-term bond yields function benchmarks for company debt, and better yields will increase borrowing prices for companies, risking progress. Moreover, a debt market dominated by hedge funds and short-term gamers could develop into extra risky.

Bitcoin The Beneficiary

Retailer-of-value property like Bitcoin may benefit considerably from the unfolding international bond market pressure and lack of religion in sovereign debt.

If authorities debt turns into much less enticing on account of excessive yields, poor public sale efficiency, and credit standing downgrades, traders could search options to retailer capital.

Governments can also more and more depend on inflation to erode the actual worth of debt, and BTC has typically been thought-about an inflation hedge.

Being non-sovereign and decentralized, Bitcoin additionally affords a parallel monetary system that’s resistant to political manipulation or debt monetization.

As nations and traders diversify away from US Treasuries and the greenback, Bitcoin may be a part of a brand new impartial reserve asset basket, particularly in rising markets.

The asset was holding regular at round $105,500 on the time of writing, having recovered from its Friday dip to $101,000.BTC has gained greater than 50% over the previous 12 months.