**[Bitunix Analyst: $40 Trillion U.S. Debt Pressure Intensifies, Treasury Moves to Lower Long-Term Bond Yields, USD Plummets, BTC and Gold Strengthen Simultaneously]** BlockBeats News, August 20: U.S. federal debt officially surpassed $40 trillion, with a single-month fiscal deficit of $432 billion in July. Debt interest payments in the first 10 months of fiscal year 2026 have already exceeded Medicare spending, becoming the second-largest federal budget item after Social Security. With the fiscal deficit still accounting for approximately 6% of GDP and the supply of long-term debt continuously increasing, the issues facing U.S. bond yields are no longer just about inflation but also fiscal supply, government financing needs, and rising term premiums. Meanwhile, the Treasury announced an increase in the buyback scale for 10- to 30-year U.S. bonds in an attempt to ease upward pressure on long-term bond yields. This move temporarily improved market sentiment in the bond market and reflected the government's heightened sensitivity to the financing cost pressures caused by high long-term bond yields. Yesterday, the market quickly reacted to this policy signal: the DXY fell 0.9% to approximately 97.9, BTC surged 7.13% to $69,310, and gold rose 4.31% to $4,522. The weakening of the U.S. dollar and the decline in long-term bond yields have provided room for the repricing of non-dollar assets and high-beta assets, with the simultaneous strengthening of BTC and gold being particularly noteworthy. However, it is important to note that the latest Federal Reserve meeting minutes still indicate that several officials believe further rate hikes may be necessary if inflation does not continue to decline, suggesting that monetary policy has not shifted to a dovish stance. Therefore, yesterday's market movement was more closely tied to the easing of financial conditions and the repricing of the dollar following the Treasury's intervention in the long-term bond market, rather than a rate-cut trade. For BTC, the key going forward remains whether the DXY and long-term U.S. bond yields can maintain their weakness. If the dollar continues to weaken and long-term bond yields stabilize, BTC is likely to extend its current rebound. However, if inflation remains sticky and the $40 trillion debt pushes term premiums higher again, a renewed rise in U.S. bond yields could once again exert valuation pressure on the crypto market.