Crypto Market News: US President Joe Biden and top Republican Kevin McCarthy are set to restart the debt ceiling deal talks on Monday as the debt limit negotiating team from the White House arrived at Capitol Hill, according to reports. The talks will begin ahead of a crucial deadline on June 1, 2023, after which the US Federal government will default on some of its debts. The meeting is of utmost prominence as White House had earlier warned that if the debt ceiling deal is not made, it could have a devastating effect on the stock markets.
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Last week, the White House said that if the US defaults, the stock market could likely decline by more than 45%. In addition, President Joe Biden sparked a row in the crypto market with his comments over not intending to help crypto traders with the deal.
Debt Ceiling Talk Bullish For Bitcoin
In this context, the crypto trader community is enraged over Biden’s comments. In fact, some traders spoke about not supporting Biden over his government’s Bitcoin stance in the upcoming US election 2024. However, uncertainty in the macroeconomic space had in the recent times worked in favor of the crypto market, as investors preferred high return, high risk investment options. Hence, uncertainty and instability will remain in the financial market whether or not a debt ceiling deal is arrived at or not before the June 1 deadline.
A debt ceiling deal that raises the ceiling is bullish for Bitcoin.
A debt ceiling no deal that causes default and pandemonium is bullish for Bitcoin.
Pretty much everything that happens is bullish for Bitcoin.
Funny that some either can’t see it or don’t want to see it.
— Mike Alfred (@mikealfred) May 21, 2023
Relief in the markets would trigger BTC price jump if the deal is reached at, while fear and uncertainty in stock market would transform Bitcoin into a safe bet if the deal talks fail. Overall, it will likely be a safe ride for crypto market in the coming months. On the other side, the crypto market would digest positive momentum in the economy if the US Fed eventually opts to hold the interest rate hike spree.
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