According to The Kobeissi Letter, Congressional Budget Office (CBO) projections have consistently underestimated the long-term growth of US federal debt. In 2001, the CBO forecasted that federal debt held by the public would decline to $0.9 trillion by 2011, but actual debt surged to $10.4 trillion—a miss of $9.5 trillion (source: The Kobeissi Letter, May 29, 2025). This persistent underestimation signals growing fiscal uncertainty, which is driving increased demand for cryptocurrencies and decentralized assets as hedges against US dollar devaluation. Traders should monitor these macroeconomic trends, as rising federal debt levels historically correlate with increased volatility and bullish sentiment in the Bitcoin and altcoin markets.

According to The Kobeissi Letter, the Congressional Budget Office (CBO) consistently underestimates long-term US federal debt increases, with 2001 projections missing the mark by $9.5 trillion by 2011 (source: The Kobeissi Letter, May 29, 2025). This persistent underestimation highlights ongoing fiscal uncertainty, which has historically driven increased demand for alternative assets like Bitcoin and stablecoins as investors seek hedges against US dollar devaluation. Traders should monitor macroeconomic signals and debt policy developments, as continued debt growth can fuel volatility and upward momentum in the cryptocurrency market.