BlackRock Warns: Exploding US Debt Set to Supercharge Crypto in AI Era

BlackRock, the huge company that manages trillions, just released its investment outlook for 2026. It makes the US economy look bad, but it makes crypto look good. If debt keeps going up, things could change, and digital assets like bitcoin could become more appealing.

The report says that US bonds are very risky. With debt rising over $38 trillion, the cost of borrowing could go up. This happens when people are worried about paying back money and fighting price rises at the same time. Long-term Treasuries used to be a safe place to put money, but in this leveraged world, they don’t seem so safe anymore.

AI needs a lot of power for data centers—up to 20% of the electricity used in the US by 2030. That’s a problem, but it helps bitcoin miners. They get energy deals and rent space to AI companies that need fast computers. Some mining companies made more money in 2025 because of this side job.

BlackRock links this to the growth of cryptocurrencies. When old hedges don’t work, institutions turn to bitcoin to protect themselves from financial problems. Their own bitcoin ETF made $100 billion, making it one of the best investments. This huge amount of money could send crypto prices through the roof.

The company says it’s a step toward a “tokenized financial system.” That’s where blockchains make assets digital so they can be traded more easily. Stablecoins, which are linked to real money like dollars, connect old finance with new technology. They are no longer on the edge; they are important for liquidity.
Larry Fink, the CEO of BlackRock, thinks that tokenization is the future of finance.

Digital options come into play when governments have trouble with debt. The report says, “More government borrowing makes it easier for shocks like bond yield spikes linked to fiscal concerns to happen.”
“Stablecoins are no longer a niche,” says Samara Cohen, their global markets head. “They are becoming the link between traditional finance and digital liquidity.”

Note: This article was written by our editor, rewritten with the help of AI, and reviewed by our editor to ensure its accuracy and compliance with our standards.