Right now in 2025, the United States owes $36.22 trillion — yes, trillion with a “T.” To put that into perspective, if every single person in the U.S. gave the government $100,000 today, we still wouldn’t have enough to pay it off.
That’s not even the scariest part.
Just a few days ago, on May 16, credit rating agency Moody’s dropped the U.S. government’s rating from Aaa to Aa1. And when big names like Ray Dalio (billionaire investor and founder of Bridgewater Associates) warn that the U.S. could hit $50 trillion in debt by 2035, it’s hard not to take it seriously.
“Sell America” — What Does That Even Mean?
I saw the phrase “Sell America” trending on social media. I wasn’t sure what it meant at first, but here’s what it comes down to: Investors – especially big global ones – are pulling money out of U.S. assets. They’re selling off U.S. stocks and bonds. They’re avoiding the dollar. They’re looking elsewhere.
Here’s why – The government adds $1 trillion of new debt every 3 months. Interest payments alone are exploding. In 2021, only 9% of federal revenue went to paying interest. In 2024, it doubled to 18%. By 2035, it could hit 30% of revenue. A new tax cut passed this May under President Trump is expected to add another $2 trillion to the debt over the next 10 years.
On top of that, the U.S. slapped new tariffs on European imports starting July, which could hurt trade and make things even messier. All this is pushing investors to look for safer alternatives — and crypto is one of them.
Also Read – The Very First Post You Should Read to Learn Cryptocurrency
How This Debt Mess is Making Crypto Look Like a Safe Bet?
1. Bitcoin is Becoming the “Digital Gold” Everyone Talks About
Gold has always been a safe haven. But now? People are calling Bitcoin the new gold. It’s not controlled by any government. There’s a limited supply. It’s global. It’s fast. And in times like this, those things matter. On May 21, Bitcoin hit a new all-time high – $109,000. That jump came just days after Moody’s downgraded the U.S. credit rating.
According to Binance and Coinbase, more users are buying Bitcoin and Ethereum since the downgrade. U.S. Bitcoin ETFs (like IBIT) saw $40 billion in new money in just one month. That’s not a fluke. That’s a shift.
2. The U.S. Dollar is Weakening — And That’s Pushing People Toward Crypto
A strong dollar usually keeps crypto in check. But guess what? After the credit downgrade, the dollar lost ground, and Treasury bond yields shot up — meaning the U.S. has to pay more to borrow money. This makes traditional investments less attractive. And crypto? It starts to look like a smarter alternative. Analysts are already saying Bitcoin could hit $120,000 or higher before the year ends.
3. Volatility is High — But So is Interest
Let’s be real: crypto is still volatile. After Moody’s downgrade, the S&P 500 and Dow Jones dropped sharply, and crypto bounced around too. When investors panic, they sell everything — including Bitcoin. But here’s what surprised me: Even with the volatility, crypto is attracting more attention, not less. People are talking about it, buying small amounts, exploring apps like Coinbase and Gemini, and learning how ETFs work.
4. Decentralized Finance (DeFi) is Quietly Booming
Another thing I found while digging — DeFi is back in the spotlight. People are losing faith in traditional banks and governments. They want systems that aren’t controlled by politics or bad spending decisions. In 2025: DeFi total value locked (TVL) crossed $150 billion. Platforms like Uniswap, Aave, and Curve are seeing more users. A Trump-linked firm, World Liberty Financial, invested $12 million in Ethereum, Chainlink, and Aave in late 2024, signaling even big players are jumping in.
So… Is Crypto Really the Answer?
Honestly? That depends on who you ask.
But here’s what I’ve come to believe:
Crypto is no longer just “the future” – it’s part of the present.
And moments like this – when trust in the U.S. economy starts to crack – are when crypto shines.
People want control. They want protection. They want options.
And crypto, for all its risks, checks those boxes in a way few other things do.
Quick Recap
| What’s Happening | Why It Matters |
| U.S. debt hits $36.22 trillion | Trust in government finances is dropping |
| Credit rating downgraded by Moody’s | Makes U.S. less attractive for global investors |
| “Sell America” trend | Investors pulling out of U.S. assets |
| Bitcoin hits $109K | Seen as a hedge against debt + inflation |
| DeFi platforms gaining traction | People exploring decentralized alternatives |
| ETFs like IBIT seeing record inflows | Mainstream adoption of crypto-based products |
Also Read – The Race Is On – Solana and XRP Eye the ETF Prize
Final Thought
I’m not here to tell you to buy Bitcoin or jump on the crypto bandwagon.
I just wanted to understand what was happening — and what I found honestly surprised me.
The U.S. economy is at a turning point. And whether you’re into crypto or not, you can’t ignore the shift that’s happening.
The information provided in this article is for informational and educational purposes only. It is not intended as financial, investment, or legal advice. The author is not a financial advisor, and the content reflects personal observations and research, not professional recommendations. Investing in cryptocurrencies, such as Bitcoin, Ethereum, or other digital assets, involves significant risks, including high volatility, potential loss of principal, and regulatory uncertainties. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.