Bitcoin has rebounded sharply from its summer slump, approaching $90,000 earlier this month as bullish forecasts spread and some smaller cryptocurrencies outperformed it. The rally comes as International Monetary Fund (IMF, global financial institution) head Kristalina Georgieva warns that global debt has reached a critical level. Global debt rose by $10 trillion in the first half of the year to exceed $365 trillion, while U.S. debt reached $40 trillion and annual interest payments climbed to $1.27 trillion. Analysts say expectations that governments will tolerate inflation to reduce the real burden of debt are supporting the so-called debasement trade, which favors bitcoin, gold, stocks and commodities. Georgieva urged governments to reduce debt and prioritize fiscal consolidation, while central banks maintain price stability. The Federal Reserve has raised interest rates this month, with oil at $100 per barrel adding to inflation concerns. The Kobeissi Letter said the U.S. dollar has lost 23% of its purchasing power since 2020, while inflation has remained above the Federal Reserve's 2% target for 60 consecutive months.