The latest consumer credit report released by the New York Fed has intensified the decline in U.S. stocks, and since BTC itself is highly correlated with U.S. stocks, it’s hard for Bitcoin to hold its ground when the Nasdaq drops by more than 2%. In Q2 2025, U.S. household debt stood at $18.39 trillion, but by Q3 2025, this figure had risen to $18.59 trillion, an increase of $200 billion, setting a new historical high for U.S. household debt. This indicates that the overall debt level of U.S. residents is expanding. The main driver of this expansion is mortgages, which account for 70% of the total debt. Mortgage debt reached $13.07 trillion, increasing by $137 billion and setting a new record. Meanwhile, auto loans, credit card debt, and student loans also hold significant proportions. Credit card debt increased by $24 billion, reaching $1.23 trillion, breaking its historical high. Student loans rose by $15 billion, hitting $1.65 trillion, once again setting a record high. This new peak in total debt, along with record highs in many subcategories, shows that U.S. households are still relying on credit to sustain consumption. The report reveals that in Q3, 4.5% of debt entered "trouble status" (over 90 days overdue), slightly up from the previous quarter. Credit cards (9.1% delinquency rate) and auto loans (3.2%) are particularly concerning. With high interest rates (credit card rates averaging over 21%), this could escalate after the Q4 Christmas shopping season. If the Fed continues to maintain high interest rates without cutting them, the risk of household defaults may gradually accumulate. Sponsored by @Bitget｜Save the most on fees, grab the best rewards, and become a VIP at Bitget.