U.S. federal debt surpassed $38 trillion on January 3, 2026, according to Treasury Department tracking. This new milestone has been reached as some in the cryptocurrency community celebrate Genesis Day, the anniversary of Bitcoin’s first block. According to the report, this period was notable because it highlighted the contrast between public borrowing and Bitcoin’s fixed supply.
Debt hits new high
Total federal debt surpassed $38 trillion on Jan. 3, according to Treasury Department statistics. The increase has been rapid over the past two years, from about $34 trillion at the beginning of 2024 to about $36 trillion at the end of 2024 and $38.5 trillion at the end of 2025.
Analysts recently calculated that debt is growing at about $6 billion a day, a pace that is driving interest costs higher and narrowing options for future budgets. Part of the increase is due to ongoing budget shortfalls where spending exceeds revenue.
On January 3, 2009, the Bitcoin network launched with the mining of its first block, known as the Genesis Block.
The block contained the following headline: @TheTimes newspaper:
“Prime Minister faces second bailout of banks.”
This message permanently anchors Bitcoin’s origins… pic.twitter.com/hGozJOYd3I
— UK Bitcoin Policy (@bitcoinpolicyuk) January 3, 2026
Cause of the surge
According to market research, there are several factors behind this surge. These include persistent annual deficits, increased interest payments on existing debt, and the massive spending bills recently enacted by Congress.
Debt held by the public and amounts owed to the federal trust fund together make up the headline figures. Economists warn that as debt grows relative to the size of the economy, more taxpayer money will be needed to pay interest, which could crowd out other priorities.
A dashboard showing the US government debt, now over $38 trillion and climbing. Source: US Debt Clock
Bitcoin community reaction
On January 3, many Bitcoin supporters celebrated Genesis Day, a day that symbolizes the financial change that occurred when Bitcoin’s first block was mined in 2009. Some users posted about the contrast between the ever-growing national debt and Bitcoin’s 21 million coin supply limit.
Others used the anniversary to raise broader questions about fiscal rules and the money supply. Reactions were mixed. Some saw it as a warning, others saw it as a celebratory moment.
Investors and commentators weighed the implications. Some in the market treat scarce assets like Bitcoin or gold as a hedge against the risks of excessive leverage.
At the same time, mainstream economists warn that large, sustained deficits could increase borrowing costs and slow growth in the long term. Treasury officials closely monitor cash needs and sometimes change borrowing schedules to bridge the gap between revenues and spending.
Featured image from Unsplash, chart from TradingView
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