Growing panic fears could disrupt Bitcoin price as US deficit hits $1.8 trillion

The US federal government ran a $432 billion deficit in July 2026, the single largest monthly shortfall since March 2021. The fiscal-year-to-date number has now ballooned to $1.8 trillion, and Bitcoin bulls think they know exactly what comes next. Bitcoin has been trading around $65,000 for roughly six months, consolidating after a brutal correction that erased more than $1 trillion from the cryptocurrency’s total market capitalization. The deficit math and why it matters for Bitcoin When the government spends far more than it collects, the gap has to be financed. Treasury issuance rises. If private buyers don’t absorb all of it, pressure builds on the Federal Reserve to step in, either directly or through mechanisms that effectively expand the money supply. That sequence, government borrows more, central bank accommodates, currency purchasing power erodes, is the core thesis behind Bitcoin as an inflation hedge. Anthony Pompliano, one of the most vocal Bitcoin advocates in the macro investing space, has pointed to this dynamic as the foundation for long-term annual gains in Bitcoin’s price. His argument is straightforward: as long as money printing continues, hard-capped assets be...