JPMorgan Sees Gold-to-Bitcoin Rotation as $39 Trillion US Debt Fuels Dollar Collapse Warnings
Updated
Updated · Forbes · May 11
JPMorgan Sees Gold-to-Bitcoin Rotation as $39 Trillion US Debt Fuels Dollar Collapse Warnings
2 articles · Updated · Forbes · May 11
JPMorgan analysts said the “debasement trade” is shifting from gold to bitcoin, citing stronger bitcoin ETF inflows after the Iran conflict even as bitcoin remains below its 2025 peak of $126,000.
U.S. debt fears are driving that call: national debt has moved above 100% of GDP, the Treasury has paid $628 billion in net interest this fiscal year, and the total debt pile has swollen to about $39 trillion.
Ray Dalio warned the dollar is nearing collapse, saying Washington spends about $7 trillion while taking in roughly $5 trillion and that fiat currencies historically weaken in such debt-heavy periods while gold rises.
Gold has still rebounded after sliding toward $4,000 an ounce in April, with analysts pointing to inflation, sovereign debt and global uncertainty as continuing support even as JPMorgan argues bitcoin is gaining ground.
As the U.S. dollar falters, will upcoming crypto regulations finally dethrone gold as the world's ultimate safe-haven asset?
How will the U.S. military's Bitcoin operations counter China's strategy in a new era of financial warfare?
US Debt Crisis Surges Past $39 Trillion: Bitcoin Overtakes Gold as Preferred Hedge in 2026
Overview
The report highlights the escalating US national debt crisis in May 2026, with warnings from financial leaders like Ray Dalio and Jamie Dimon that current financial pressures are just symptoms of deeper problems. Dalio warns the country could be fundamentally changed within five years if no action is taken, while Dimon urges policymakers to act decisively. Federal Reserve Chair Jerome Powell stresses that government debt is growing much faster than the economy, calling the trend unsustainable. These concerns set the stage for investors increasingly turning to Bitcoin as a hedge, reflecting shifting confidence in traditional financial systems.