JPMorgan warns that the U.S. national debt of $38.15 trillion poses a major risk, suggesting a path of financial repression with higher inflation to ease the burden. The debt-to-GDP ratio of 120% raises concerns about servicing the debt. While a buyers’ strike is not imminent, the bank notes that solutions are politically challenging. The Fed’s independence may need to erode to prioritize debt sustainability over strict price stability. Global crypto markets are down, with significant liquidations. JPMorgan stresses the macroeconomic impact on investors, with Bitcoin showing high correlation to tech stocks.

Read more at Yahoo Finance: JPMorgan reveals plan for swelling debt crisis as Bitcoin crashes