Forbes: Bitcoin 'debasement trade' narrative gains traction, Trump says a certain degree of inflation can quickly reduce $40 trillion in debt.

BlockBeats news, October 3rd, according to Forbes, U.S. President Trump said in an interview with Time magazine that "a certain degree of inflation will also repay debt very quickly," sparking market discussion about the United States reducing its real debt burden through nominal economic growth and inflation.

The report pointed out that the scale of U.S. federal debt has exceeded 40 trillion dollars, more than doubling over the past decade, while interest expenses have continued to increase after the Federal Reserve raised rates. Trump, U.S. Treasury Secretary Scott Bessent, and Elon Musk have all previously stated that technology-driven economic growth is an important way to address debt pressure.

At the same time, the price of Bitcoin has risen about 300% since its 2023 low, but is still about 30% below the 126,000-dollar high set in 2025. The market has recently refocused on the "debasement trade," in which investors allocate assets such as gold and Bitcoin to hedge against the risk of declining fiat currency purchasing power.

Forbes cited the view of Bitfire Research, saying that in the long term, the logic of Bitcoin as a tool to hedge against fiat currency depreciation still exists, but short-term prices may still be affected by interest rate policy and dollar liquidity.

In addition, PCE data, the inflation indicator preferred by the Federal Reserve, show that U.S. prices rose 3.4% year-on-year, still above the Federal Reserve's 2% target level; the market expects the probability that the Federal Reserve will keep interest rates unchanged at its late-October meeting to be about 70%.