The U.S. debt burden continues to grow, and the cost of servicing it is increasing, taking up an ever-larger share of government revenue.
Although the total national debt has already exceeded $39 trillion, the main issue now is not so much its size as how expensive it is to maintain.
Growth of U.S. Debt Burden Accelerates Amid Rising Interest Payments
From October 2025 to March 2026, the U.S. paid about $529 billion just in interest. Broken down, that’s about $88 billion per month or more than $22 billion per week.
The scale is clear in comparison. Over the same period, defense spending was $461 billion, and education about $70 billion. Interest on debt is already on par with key budget items.
And the situation is accelerating. A year ago, for the same six months, payments were at $497 billion. The difference was $33 billion, that’s a 7% increase in a year.
According to CBO, the explanation is simple. The debt itself has grown, and long-term rates have risen. A drop in short-term rates slightly smoothed the growth, but it didn’t change the overall picture.
But even more important than the numbers is the share of the budget. In 2025, 18 cents of every dollar of revenue went to interest. This is the highest since the 1990s.
And this figure is rising quickly. Since 2015, it has tripled.
It could get even worse. According to CBO forecasts, by 2035, servicing the debt will take up 25 cents of every dollar.
And that’s in a fairly calm scenario. The calculations don’t include a recession or a sharp rise in yields. If something goes wrong, the burden will be even higher.
U.S. Debt Service Costs. Source: The Kobeissi Letter
As borrowing costs rise, the story of U.S. debt is increasingly about how much it costs to service, not just its size.
What This Means for the Crypto Market
Problems with the U.S. budget are increasing interest in assets with limited supply, such as gold and BTC.
At the same time, BTC is holding up better than the market, even amid the conflict between the U.S. and Iran.
The situation is different with gold. Amid tensions, it actually fell. But if the macroeconomy continues to deteriorate, investors may start moving into more defensive instruments.
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The main question remains open. Will BTC establish itself as an inflation hedge or remain a risky asset with high volatility?
But the trend is already clear. The factors fueling this debate are only getting stronger.
Why This Is Starting to Pressure the Market More
Interest expenses are no longer just a line in the reports. This is real money that leaves the system and no longer works in the economy.
The higher the debt payments, the less is left for everything else. At some point, this starts to be felt. Either borrowing increases, spending is cut, or pressure on revenue grows. There aren’t many options, and none of them are liked by the markets.
There’s another point. The more debt, the more new issuances. The market gets an additional supply of bonds. If demand can’t keep up, yields go up.
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And that’s already a chain reaction. Money gets more expensive, interest in risky assets falls, and investment slows down.
That’s why the debt story has long gone beyond ‘just macro.’ It’s a factor that directly affects market sentiment.
For now, everything is happening gradually. But if the trend continues, the market will start pricing in this pressure more than it does now.
