2026-01-18 20:00:36

Who will fill the $4 trillion deficit hole?

Tax cuts combined with tariffs—Trump’s signature move—directly created a big hole in the US treasury. The $4 trillion gap cannot be filled solely through tariff revenue—household purchasing power is actually being eroded.

The question is, how long can this money-printing machine keep running?

Pressure is being released from multiple fronts simultaneously: inflation hasn't truly cooled down, yet there's an expectation of interest rate cuts; US debt continues to flow out, and the de-dollarization movement is gaining momentum; the foundation of dollar credit is being repeatedly shaken. The real signals come from the reduction in holdings in Eastern markets.

Interestingly, cryptocurrencies have suddenly shifted from being "risk assets" to "strategic options." From being discredited to gaining importance—what is behind this attitude change? Could it be an attempt to diversify risk through asset diversification?

As the old economic narrative begins to show cracks, capital will inevitably seek an exit. Expectations of a rate cut cycle, combined with the reality of a possible hawkish return, create a market searching for direction amid these contradictions. The crypto market is also being repositioned in this macro game.

Volatility is both a risk and a filtering mechanism. What do you think will be the final outcome of this high-stakes gamble? How will the crypto asset allocation evolve? Share your thoughts in the comments 👇

BTC0.17%

BOT42.55%

AXS7.19%

ME21.78%

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LiquidationWatcher

· 2h ago

The printing press should have been shut down long ago. Now, there's really no way out. Speaking of which, if the US dollar's credibility really collapses, will we crypto enthusiasts end up winning big? The $4 trillion hole can't be filled, and when the Eastern markets reduce their holdings, the dollar will depreciate. I believe in this crypto logic. The current issue isn't whether BTC will rise, but who still wants to hold US dollars. Trump's moves have indeed pushed the market into a corner. The outflow of US debt, de-dollarization, and crypto revaluation—these three signals stacking together suggest there's definitely something fishy in the next wave. Rather than obsessing over macro factors, I'm more concerned about where the bottom is... Do you still dare to add positions now?

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AirdropworkerZhang

· 2h ago

The printing press won't last much longer; this time, we really need to find an exit. This wave of dollar credit crisis is real. The reduction of US debt holdings by the East is no joke. The sudden shift of crypto to a "strategic option" also indicates that things are serious. Start allocating to BTC; someone has to cover the deficit gap. --- A $4 trillion shortfall? Ha, in the end, it's still about cutting leeks. The question is, who will be cut? --- If inflation can't be brought down and interest rates need to be lowered, the logic just doesn't hold. No wonder funds are flooding into crypto. --- De-dollarization is really happening. I used to think it was a joke. --- Crypto has shifted from a risk asset to a strategic option. Basically, big institutions have seen through it and are starting to lay low. --- This is true asset hedging—much more reliable than gold or real estate. --- Outflow of US debt + de-dollarization + rapid money printing—will BTC still fall? I don't believe it. --- Who will fill the deficit gap? In the end, it's ordinary people. Crypto allocation is the way out.

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MidnightSeller

· 2h ago

Once the printing press starts, we have to run. I've long seen through it; the US dollar's credit will eventually collapse.

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GhostInTheChain

· 2h ago

The printing press won't be able to run for much longer; someone will have to pay sooner or later. The bankrupt US finally remembers our benefits, haha. This round of Eastern reduction is a heavy signal; US bonds are about to cool down. Crypto is no longer gambling; it's truly a hedging tool now. The cracks in US dollar credit are widening; BTC is the insurance policy. Trump's combination punches have backfired on himself; truly brilliant. Tariffs can't make up for the 4 trillion yuan deficit; everyone in the family has to tighten their belts. Decoupling from the US dollar, has crypto become the new favorite? The volatility filtered out are those who truly understand. Funds will always find a place to go; ours is the export, right?

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