In October 2025, U.S. federal interest payments on the national debt reached a staggering $104.4 billion, the highest monthly total on record, per the U.S. Treasury’s monthly budget report. This marks a 27% increase from October 2024’s $82 billion, driven by a ballooning $38 trillion gross national debt and a weighted average interest rate of 3.36%, up from 3.26% a year ago. The $284 billion budget deficit for October, the second-largest monthly gap on record, was exacerbated by a partial government shutdown that delayed revenues and expenditures.
The $38.09 trillion gross debt as of November 5, 2025, grew $2.18 trillion year-over-year, averaging $69,140 per second in increases. Interest payments totaled $970 billion in FY 2025, outpacing defense and Medicaid. Goldman Sachs CEO David Solomon warned on October 30, 2025, that if GDP growth dips below 2%, the debt faces a “reckoning,” with projections exceeding $1 trillion annually by 2026. The partial shutdown, starting November 7, 2025, delayed economic data and decisions, pushing debt higher.
Rising interest crowds out productive spending, potentially slowing growth and eroding investor confidence in U.S. fiscal policy. The CBO forecasts interest as the largest budget item within a decade, risking a “debt trap” where borrowing covers interest alone. Amid a $3.8T crypto market cap and Bitcoin at $113,234, this fiscal strain contrasts with digital asset optimism but underscores stablecoins’ appeal as hedges. Heading into the 2026 elections, policymakers face pressure for reforms, with tariff reductions cutting deficit estimates by $1T over a decade.
Track Treasury data on treasury.gov and CBO projections at cbo.gov. With BTC support at $112,000 and ETH at $4,000, dollar-cost average into BTC or ETH with stop-losses, or diversify into USDC for stability, per TradingView. Follow @TheBlock__ on X for policy updates. While fiscal pressures mount, crypto’s decentralized nature offers alternatives, but volatility is tied to macro events like Jackson Hole (August 2025 review).
