US Treasury may hit $41.1T debt cap by February: Bloomberg

The U.S. Treasury is projected to reach its $41.1 trillion debt ceiling by February, according to Bloomberg, setting up a potential fiscal standoff in Washington. A breach of the cap could force tighter fiscal policy, with knock-on effects for Treasury yields and broader economic stability. The timing matters for crypto and risk assets because debt-limit brinkmanship has historically coincided with volatility in yields and liquidity conditions. Traders will watch for the Treasury's extraordinary measures and any congressional negotiation timeline, with the February deadline as the key marker.