Goldman Sachs Warns of U.S. Debt Crisis Risk – Coincu

Goldman Sachs has raised alarms about U.S. fiscal policy on June 20, 2025, citing the national debt’s unsustainable trajectory.

Goldman Sachs stresses urgent fiscal reform is critical to avoiding severe economic repercussions.

U.S. Debt Payments Forecast to Exceed $1 Trillion in Interest

Goldman Sachs economists emphasized that current fiscal policies fail to address the growing U.S. national debt projected to accumulate further at an unsustainable rate. With the debt now second only to levels seen after World War II, economic analysts highlight crucial implications for the future.

U.S. debt payments are expected to reach $1 trillion in interest next year, exceeding Medicare and defense budgets. Economists warn of potential fiscal austerity to prevent a debt crisis that might not effectively reduce the debt-to-GDP ratio.

“If the debt continues to grow, interest expenses could become so large that stabilizing the debt-to-GDP ratio would require persistent fiscal surpluses, which are historically difficult to sustain due to economic and political challenges.” – Goldman Sachs Economists

Bitcoin Market Response Amid U.S. Fiscal Concerns

Did you know? The U.S. national debt is projected to reach levels not seen since the aftermath of World War II.

Bitcoin (BTC) holds a market cap of $2.08 trillion as of June 20, 2025. Its price stands at $104,709.70, with a 24-hour trading volume of $37.12 billion, down 21.75%. Bitcoin’s market dominance remains at 64%, reflecting its continued significance as a digital asset.

The Coincu research team suggests that failure to manage fiscal challenges could spur a shift towards assets perceived as more stable. Cryptocurrencies like Bitcoin may benefit from concerns over fiat currency devaluation due to potential fiscal instability.