The U.S. Congress has once again fallen into deadlock—budget votes failed, the government temporarily shut down, and the treasury is under pressure. This storyline has played out too many times over the past decade, each time feeling all too familiar. But interestingly, every round of political chaos has instead become a starting point for digital assets.



This is no coincidence.

As lawmakers argue over deficits and U.S. Treasury yields fluctuate, the market begins to reassess the dollar credit system. Historical data speaks volumes: during the 2011 debt crisis, the 2019 government shutdown, and the 2023 banking turmoil, Bitcoin nearly always rose against the trend during these periods of chaos. The current backdrop is equally alarming—the scale of U.S. debt has surpassed $36.2 trillion, stablecoin issuers are forced to hold large amounts of short-term U.S. Treasuries to keep the system running, essentially using crypto capital to supplement traditional finance.

After last week's congressional vote failure, Bitcoin indeed experienced a single-day drop of over 5%. But a detail from the market reveals itself: nearly $500 million in liquidations occurred across the network, with almost 80% coming from long positions. In other words, retail investors are panicking and selling off, while large funds are quietly accumulating. This is a typical institutional accumulation behavior.

Bitcoin was originally defined as "digital gold," a purely safe-haven asset. But a new narrative is brewing. Next-generation protocols like Hemi are upgrading Bitcoin’s role—from a simple safe haven to a tool capable of generating actual yields.

What’s innovative about Hemi? It uses Bitcoin’s own security as collateral for returns. Through the PoP (Proof of Proof) mechanism, it anchors the entire network’s state to the Bitcoin main chain, meaning any activity on layer 2 or sidechains is secured at Bitcoin’s level. In other words, your funds are no longer just holding for appreciation; they can generate yields while enjoying crypto-grade security.

What does this mean for the market? When traditional finance exposes structural vulnerabilities, decentralized protocols are improving their ecosystems. Large funds buying at low levels is not without reason—they are not just looking at short-term fluctuations but are viewing this cycle as an upgrade from safe haven to cash flow-generating digital assets.
BTC-0,18%
HEMI1,75%
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faded_wojak.ethvip
· 6h ago
Here we go again, I'm already tired of this routine. Retail investors continue to panic, institutions keep buying, and the cycle repeats. The figure of 36.2 trillion US dollars in bonds is making me a bit uneasy; it's hard to say how long the US dollar's credit can last. Hemi's layer-2 solutions sound good, but trust issues are still there.
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CommunityLurkervip
· 6h ago
It's the same old story, every political turmoil claims to be a risk-avoidance, yet retail investors still get cut. What are the big funds hiding? They're just waiting for us to take the bait. Whether Hemi can truly generate returns or if it's just another hype, we'll see. $36 trillion in US debt—basically, the US is just printing money. Those of us holding assets are the real backstops. Is this wave really institutional accumulation, or just another big harvest scheme? We'll find out soon enough. Regarding stablecoins eating US debt, it feels like systemic risk is gradually accumulating, and no one's eager to be the sucker to take the fall. It sounds great in theory, but in practice, there are many protocols generating cash flow, and in the end, they all end up zero.
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CryingOldWalletvip
· 6h ago
Here comes the same story about US bonds again. Every time they talk about crisis and opportunity, and I end up being the one losing money. Retail investors cut losses while big players buy up, playing a double act here. I just want to ask, who will be the final bag-holder? Hemi sounds good, but can the new narrative be realized or is it just another air project? US debt is 36 trillion? Honestly, that's a bit scary. No wonder institutions are hoarding Bitcoin. After the big funds finish their ambush, will retail investors still get a share? That's what I care about most.
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rugged_againvip
· 7h ago
It's the same logic again... Every time there's political chaos, Bitcoin rises. I really don't believe you anymore. Have you heard of Hemi? It feels like a new concept to cut new leeks. Retail investors sell off, institutions scoop up the bottom. This script is really terrible. I just want to know who that institution is. 36 trillion US dollars in US debt... So in the end, crypto still has to clean up after fiat currency.
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