American households are drowning deeper in credit card debt. Q3 2025 hit a grim milestone—$1.23 trillion in total revolving debt, marking a staggering $450 billion surge since 2021. That's roughly a 58% jump in just four years. The numbers reveal a troubling pattern: consumers are increasingly reliant on expensive borrowing, with average interest rates hovering near two-decade highs. When traditional finance tightens credit, liquidity pressures ripple across all asset classes. For crypto investors, this economic backdrop matters. Rising household debt typically signals weakening consumer confidence and potential economic headwinds—factors that influence institutional and retail capital flows into alternative assets. Whether this debt spiral accelerates inflation or triggers a credit contraction will shape market sentiment in quarters ahead.