Bitcoin's recent rally is closely linked to investor concerns over the U.S. debt burden, according to BlackRock head of digital assets Robbie Mitchnick. Federal debt surpassed $40 trillion on Aug. 18, having doubled since 2017, while annual interest costs are nearing $1 trillion and represent more than 14% of total federal spending. Mitchnick said the resulting anxiety is driving demand for Bitcoin and gold as hedge assets. Bitcoin recorded its strongest three-day gain since 2023 last week and was trading below $80,000 at the time of the report. He also said the CLARITY Act is less important for Bitcoin than for other parts of the crypto market because Bitcoin already has broad regulatory recognition.