The U.S. fiscal 2026 year-to-date deficit hit $602 billion, slightly lower than the $711 billion recorded during the same period in fiscal 2025. However, December told a different story—the month's deficit ballooned to $145 billion, nearly doubling the $87 billion deficit from December 2024.

What drove this spike? Record government outlays. December's spending reached $629 billion while receipts came in at $484 billion. That's a gap worth watching for anyone tracking macroeconomic trends affecting asset markets.

Customs revenue added another data point to the equation: net customs receipts totaled $27.89 billion for the month. These figures matter beyond economics—fiscal deficits influence inflation expectations, Treasury yields, and ultimately investor sentiment across all asset classes, including crypto. Higher government spending without corresponding revenue typically pressures traditional markets and reshapes portfolio allocation strategies.