U.S. Debt Growth Will Drive Crypto's Gains, BlackRock Says in Report on AI

Source: CryptoNewsNet Original Title: U.S. Debt Growth Will Drive Crypto’s Gains, BlackRock Says in Report on AI Original Link: Blackrock, the world’s largest asset manager, laid out its vision for 2026 and — reading past its bearish outlook for U.S. bonds and the world’s largest economy — it’s a bullish blueprint for institutional crypto adoption.

U.S. federal debt will swell past $38 trillion, setting the tone for a market outlook defined by fragility and the failure of traditional hedges, according to the report. For crypto that’s good news, because this economic environment will lead to accelerated digital asset adoption among the Wall Street behemoths.

More government borrowing “… creates vulnerabilities to shocks such as bond yield spikes tied to fiscal concerns or policy tensions between managing inflation and debt servicing costs,” the report said.

The warning on long-term U.S. Treasuries, the traditional backbone of finance, is a signal AI-driven leverage and government debt is likely to make the financial system more fragile, and may compel institutions to turn to alternative assets like bitcoin as a hedge against fiscal failure.