The U.S. Department of War informed lawmakers earlier in the week that it requires $80 billion to cover the cost of the war in Iran and a range of other bills, with Deputy Defense Secretary Stephen Feinberg communicating the figure to members of Congress in phone calls. The request includes non-defense priorities such as farm and disaster relief, and a full supplemental bundling those items could reach lawmakers within days. Rising U.S. debt past $39 trillion has strengthened the argument for bitcoin as a hedge against currency debasement, according to JPMorgan and other market observers, as each new supplemental adds to a deficit that bitcoin advocates point to as the core case for a fixed-supply asset.
Department of War Requests $80 Billion for Iran War and Relief Programs
Deputy Defense Secretary Stephen Feinberg communicated the $80 billion figure to members of Congress in phone calls earlier in the week, clarifying that the amount is not solely for the war effort. According to reports, the sum also covers non-defense priorities such as farm and disaster relief, and a full supplemental request bundling those items could reach lawmakers within days. The ask comes as the conflict approaches its four-month mark, having begun in late February.
The $80 billion request represents a step down from earlier figures. The Pentagon initially floated a request of more than $200 billion, which met resistance from lawmakers wary of open-ended spending. In April, a defense official offered the first official estimate of the war's cost at around $25 billion, a fraction of the new supplemental.
U.S. National Debt Surpasses $39 Trillion Milestone
U.S. national debt has climbed past $39 trillion, eclipsing the size of the economy for the first time since the end of World War II. Senator Cynthia Lummis has repeatedly tied bitcoin to the nation's fiscal trajectory. Economist Peter Schiff has warned that debt could surge toward $50 trillion within a few years.
When governments borrow heavily to fund wars and relief programs, central banks often help finance the load, raising the risk of inflation and pushing some investors toward scarce assets. Each new supplemental adds to a deficit that bitcoin advocates point to as the core case for a fixed-supply asset.
Bitcoin Rebounds 11% From Conflict Lows as JPMorgan Notes Market Split
Bitcoin's behavior during the Iran conflict has sharpened the debate over its safe-haven status. JPMorgan said the war produced an unusual market split, with bitcoin showing signs of safe-haven demand even as gold and silver weakened under outflows and profit-taking. After initially falling about 8.5% when the conflict began, bitcoin rebounded roughly 11% from its opening-day lows, outperforming several traditional havens over the following weeks.
Skeptics note bitcoin still trades with risk assets much of the time and sold off sharply in the war's opening hours. However, its series of fast recoveries has lent weight to the view that bitcoin functions as a 24/7 liquidity pool that absorbs geopolitical shocks faster than slower-moving markets.
Lawmakers have pressed the administration for a comprehensive war-cost figure for months, and the supplemental will force that debate into the open ahead of the November midterm elections.
FAQ
What amount did the U.S. Department of War request for the Iran war?
The U.S. Department of War informed lawmakers earlier in the week that it requires $80 billion to cover the cost of the war in Iran and other bills, including non-defense priorities such as farm and disaster relief, according to Deputy Defense Secretary Stephen Feinberg's phone calls to members of Congress.
How did bitcoin perform during the Iran conflict?
Bitcoin initially fell about 8.5% when the conflict began in late February, then rebounded roughly 11% from its opening-day lows, outperforming several traditional havens over the following weeks, according to market data cited in reports.
Why do some investors view bitcoin as a hedge against U.S. debt?
Rising U.S. debt past $39 trillion has strengthened the argument for bitcoin as a hedge against currency debasement, according to JPMorgan and other market observers, because each new supplemental adds to a deficit and raises the risk of inflation when central banks help finance government borrowing.
