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American households are drowning in debt. The numbers just hit a breaking point—total household debt has exploded to an unprecedented $18.4 trillion. What's really alarming? Credit card balances are soaring like never before.
This isn't just another economic headline. For crypto investors and traders, it's a canary in the coal mine. When traditional consumers are maxed out on debt, it typically signals a weakening economic cycle. Higher consumer stress often translates to market volatility, portfolio rotation, and capital flowing into alternative assets like digital currencies.
The surge reflects a combination of sticky inflation, elevated borrowing costs, and consumers burning through savings. Credit card debt, in particular, grows when people are stretched thin—a telltale sign the economy is losing steam. For anyone tracking macro trends, this debt explosion deserves serious attention when positioning your portfolio.