The December federal budget deficit hit $145 billion, and that's just the monthly snapshot. According to recent statements, the trajectory puts us on track for nearly $2 trillion in total deficit by year-end.

For crypto investors, this matters. Massive fiscal deficits typically fuel inflation expectations and shape Federal Reserve policy—both key drivers of market cycles. When governments run deep deficits, it often signals prolonged monetary accommodation or currency devaluation pressures, which historically correlates with alternative asset flows.

The scale here is worth noting: $2 trillion annually represents substantial fiscal stimulus flowing through the economy. Whether through government spending or tax policy, that liquidity eventually circulates through financial markets, including digital assets.