- Robbie Mitchnick believes bitcoin is rising amid fears of a U.S. debt crisis.
- He still maintains that the leading cryptocurrency is a hedge asset.
- The expert also does not share concerns about delays to the CLARITY Act.
Bitcoin’s rebound to above the $80,000 level is driven by the macro backdrop — in particular, around U.S. government debt — which often benefits hedge assets. BlackRock’s head of digital assets, Robbie Mitchnick, said this in an interview with CNBC.
Mitchnick noted a “turnaround” in investor sentiment, saying that such rebounds have historically been typical of periods of market depression.
“Bitcoin is inherently a scarce alternative to the traditional monetary system, […] and it is materially different from other assets available to investors. Over the past couple of weeks, the stock market has been volatile, while bitcoin has shown fairly significant growth precisely because of its specific nature and how it is perceived as a new store of value,” Mitchnick emphasized.
According to the expert, the risk of a debt crisis is the biggest global driver at the moment. Whenever this topic makes headlines, hedge assets, including bitcoin and gold, rise, he added.
Mitchnick also commented on issues stemming from delays in U.S. crypto market regulation. Recall that the vote on the framework bill (CLARITY) was postponed to September 15, 2026.
“There is actually a difference between bitcoin and the rest of cryptocurrencies from a regulatory standpoint. The rest of the market, including DeFi, depends much more heavily on this legal and regulatory framework,” the expert noted.
Mitchnick is not alone in believing that bitcoin is more of a defensive asset than a speculative one.
Earlier, we covered billionaire Ray Dalio’s view, in which he urged investors to put money into gold and the first cryptocurrency amid the risk of a U.S. debt crisis.
Why Is Everyone Talking About U.S. Government Debt, and How Is It Linked to the Crypto Market’s Slump?
In August 2026, U.S. government debt surpassed $40 trillion for the first time. However, experts are concerned less about the size of the obligations than about the rapid rise in the cost of servicing this debt.
The Congressional Budget Office expects the federal budget deficit to reach $1.9 trillion in 2026, with net interest costs — more than $1 trillion. Debt held by investors already stands at about 101% of GDP and, under the agency’s baseline forecast, could rise to 120% of U.S. GDP by 2036.
The situation is being exacerbated by higher bond interest rates, which forces the government to refinance at a higher cost. In August, the yield on 30-year bonds climbed to 5.34% — the highest level since 2007.
In March 2026, analyst Luke Gromen said that 10-year securities (Treasury notes) were “20 to 30 basis points away from triggering a debt death spiral for the U.S.” At the time, their yield was 4.4%.
As of writing, it stands at 4.6%, although it rose to 4.74% earlier in August. This puts it in the zone Gromen warned about.
At the same time, the U.S. need for new borrowing remains high. The Treasury expects to raise $739 billion in July–September 2026 alone, which is $68 billion more than its May estimate.
To slow the rise in interest rates, especially on long-term bonds, the department decided that from September 9 it will at least double the size of certain securities buyback operations — from $2 billion to $4 billion.
This is what drove the crypto market higher. Against this backdrop, bitcoin broke above the $81,000 level, but failed to hold it.
Notably, the Treasury’s actions did not deliver the expected result. Yields barely changed, while debt-servicing costs rose. Billionaire Stanley Druckenmiller explained this in more detail, and we covered his view in a separate piece.
Some investors saw the Treasury’s actions as a sign that, if long-term rates get too high, authorities will try to ease pressure on the debt market. This once again strengthened the so-called dollar debasement trade — buying supply-capped assets amid concerns about debt, inflation, and future monetary policy.
Update: Zach Pandl, head of research at Grayscale Investments, said that expanding bond buybacks is only a temporary measure that does not solve the structural problem of the budget deficit. He noted the following: “The Treasury is treating the symptom of rising bond yields without addressing the disease of a structural budget deficit.” In his view, further debt growth could weaken trust in fiat currencies and support demand for bitcoin, gold, and other alternative stores of value.
Other Experts’ Views
James Lavish, CFA, co-founder and managing partner of Bitcoin Opportunity Fund, a board member at Strive, and author of the financial publication The Informationist, directly linked the Treasury’s decision to bitcoin’s rise.
A more restrained take came from Lyn Alden, founder of Lyn Alden Investment Strategy and general partner at venture firm Ego Death Capital. She said the direct impact of bond buybacks on the market is often overstated, but the signal from policymakers matters.
“The impact of Treasury buybacks is often overstated […] but the signal here is that Bessent = Yellen,” noted Alden.
In her view, regardless of their initial policy stance, Treasury leaders run into the same problem of a growing fiscal burden and ultimately have to respond to pressure from the debt market.
Ran Neuner, founder of the crypto media project Crypto Banter, co-founder and CEO of investment firm Onchain Capital, and creator and host of CNBC Africa’s Crypto Trader, took an even more bullish view for bitcoin.
He linked the sharp rally in the leading cryptocurrency to expectations of increased liquidity following the Treasury’s decision.
“Bitcoin reacts to liquidity, and the US just blinked. This could be a long and sustained move,” Neuner said.