According to Cryptopolitan, Robbie Mitchnick, head of BlackRock Digital Assets, stated that the recent rise in Bitcoin is closely related to the United States’ $40 trillion debt issue. The U.S. federal debt surpassed $40 trillion on August 18, doubling since 2017, with interest payments nearing $1 trillion, accounting for over 14% of total federal spending.

Mitchnick noted that the levels of debt and deficit are major concerns for the market, and this concern is driving investors to view Bitcoin and gold as hedging tools. Bitcoin recorded its strongest three-day gain of 2023 last week and is currently trading below $80,000. Mitchnick also mentioned that the CLARITY Act has less impact on Bitcoin compared to other areas of cryptocurrency, as Bitcoin has already gained widespread regulatory recognition.