The U.S. debt market is experiencing a major shake-up! The Federal Reserve is no longer pretending and has started buying a staggering $40 billion in U.S. Treasuries every month. Why the rush? It turns out that Japan, once the "biggest creditor," is no longer on board.

The size of U.S. debt has skyrocketed—from less than $5 trillion in 1995 to $38 trillion in 2025, with the doubling speed accelerating. Now, there are concerns about U.S. debt expectations, which the government dare not mention, but the market has already indicated its stance through actions. $SOL $BNB $ETH
Previously, Japan and China were major buyers of U.S. debt. When China refused to roll over maturing bonds, Japan’s own bond market faced big problems. To stabilize the situation, they had to raise interest rates, and institutions could only sell U.S. Treasuries to improve liquidity—no extra money to buy more. If the Federal Reserve doesn’t step in, rising government bond yields could cause chaos in the market. That’s why, since September 2024, the Fed has cut interest rates six times, yet government bond yields continue to rise—pressure is mounting.
$40 billion per month amounts to $500 billion a year—no small scale, capable of lowering market interest rates. But as problems in the U.S. financial system deepen, other buyers might follow Japan’s example, and the Fed may need to increase its purchases. Although now it’s said that purchases might drop to $20 billion, the market is ruthless, and the future remains unpredictable. How will this wave of action impact the crypto market? We’ll wait and see!