Concerns over the deficit triggered a big dump in US stocks, while Bitcoin broke through 110K to reach a new high.

Concerns about the constantly expanding deficit in the United States, combined with the dismal auction of 20-year U.S. Treasury bonds, have led to a weakness in U.S. stocks, bonds, and the dollar. Bitcoin has risen independently, undeterred by the decline in risky assets. Progress in U.S. stablecoin legislation has sparked hope for regulatory clarity, and Bitcoin reached a historic high of 110,797 this morning.

Investors are concerned about the U.S. deficit, leading to weak demand for U.S. bonds.

The demand for 20-year bonds valued at $16 billion has weakened, reigniting concerns about U.S. government borrowing and budget deficits, putting pressure on the dollar. This measure has undermined market sentiment following a significant rebound in risk assets over the past month and exposed structural concerns in the bond market.

Due to concerns over the continuously expanding debt and deficit in the United States, traders are betting that long-term bond yields will soar, and Moody’s downgraded the U.S. credit rating to below AAA last Friday.

Former U.S. Treasury Secretary Steven Mnuchin stated that he is more concerned about the expanding budget deficit in the U.S. than the trade imbalance, and urged Washington to prioritize fiscal repairs. He made these remarks during a panel discussion at the Qatar Economic Forum on Wednesday.

The budget deficit worries me more than the trade deficit. I hope we can indeed further cut spending.

Bitcoin突破 110K 創新高

Bitcoin rises independently despite the fall of risky assets, and the progress of stablecoin legislation in the United States has raised hopes for regulatory clarity, leading Bitcoin to set a historic new high.

(The U.S. “GENIUS Act” comprehensively regulates payment stablecoins: understanding issuance thresholds, reserve standards, and regulatory systems all at once )

Bitcoin reached a historical high of 110,797 this morning, being referred to as a safe haven by some market participants during the financial market turmoil triggered by Trump’s trade tariffs. This assertion has gained increasing attention recently due to the difficulties in U.S. budget negotiations, which have focused people’s attention on deficits and spending.

Michael Novogratz, founder and CEO of Galaxy Digital, stated in an exclusive interview with Bloomberg:

When this country is burdened with such debt, our situation is really very difficult. You will see long-term government bonds being sold off, the dollar facing pressure, which is also good for Bitcoin and crypto assets.

The Bitcoin futures open interest held by CME Group Inc. ( has rebounded 23% from its year-to-date low in April, and so far in May, investors have poured about $3.6 billion into U.S. Bitcoin ETFs.

So far this year, Bitcoin has risen by about 14%, outperforming other risk assets such as US stocks.

This article discusses concerns over the deficit leading to a significant fall in the US stock market, with Bitcoin breaking 110K to reach a new high, first appearing in Chain News ABMedia.