Recession Risks and Systemic Debt Crisis: How Macroeconomic Vulnerability Is Intensifying Volatility in Cryptocurrencies and Traditional Markets

U.S. Treasury bonds exceed $36 trillion, and federal debt accounts for 130% of GDP, exacerbating liquidity risks and systemic debt concerns. The Fed's interest rate hike has exacerbated borrowing costs, put pressure on traditional markets and exacerbated volatility in cryptocurrencies. Investors are turning to inflation-protected assets such as gold and inflation-protected bonds (TIPS), while cryptocurrencies face higher risk of selling due to low liquidity and regulatory uncertainty. Policy spillovers and concerns about recession reshape exposure to both types of assets.