BloFin analysts point out that despite the US federal debt exceeding $40 trillion, Bitcoin's "debasement trade" has not been as strong as expected. Their latest report suggests that this trade has entered its "second phase," with investors now focusing on government efforts to control borrowing costs rather than just monetary creation. Previously, the nomination of Federal Reserve Chairman Warsh had dampened market expectations for aggressive quantitative easing, leading to a decline in Bitcoin in early 2026. However, in August, the US Treasury announced it would at least double the size of 10-30 year bond buybacks to $4 billion per operation. This move was interpreted by the market as policymakers potentially being unwilling to tolerate higher borrowing costs, subsequently leading to Bitcoin rising by approximately 25% and gold by about 15% in August.