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- 1 The broader crypto market was stalling in uncertainties for weeks.
- 2 Cryptocurrencies prices rose ahead of debt ceiling rise in the U.S.
The leading cryptocurrency Bitcoin (BTC) witnesses a surge in its value while the U.S. debt ceiling issue signals resolving. Along with the leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), the global crypto market also rose notably. For the past several weeks, the biggest economy in the world was under the threat of strangling due to a liquidity crunch.
Bitcoin (BTC) price trading at 28,094 USD after jumping 3.54% in the last 24 hours. The crypto asset is up by 5.4% in the last week, and is at its two-week high, according to CoinMarketCap. The second biggest cryptocurrency, Ethereum (ETH) rose 3.34% in the intraday and 5.91% in the weekly session. Currently it is trading at 1,908 USD. Additionally, the global crypto market capitalization rose 2.94%, at the press time, and hit 1.17 trillion USD.
The bill formally known as “Fiscal Responsibility Act of 2023” would allow the debt ceiling of 31.4 trillion to rise further. The increase will be set for the next two years—until January 1, 2025.
U.S President, Joe Biden, reportedly said to finalize a budget agreement. The agreement was settled with House Speaker Kevin McCarthy, that postpones the debt ceiling to a certain time-period. Now, the bill seeks to face the voting from Congress members.
Though the debt ceiling had caught the market sentiments for a long time and now poised to get resolved, Treasury yields rose and the U.S. monetary tightening like factors could still impact the forward movement.
The bill took time to get passed since it got stuck in the bipartisan tussle. Both Republicans and Democrats have their conditions to get through prior to lifting the debt ceiling.
President Biden reported calling the bill a “compromise.” On the other hand, according to the House Speaker, McCarthy, the agreement was “worthy of the American people.” For the coming days following its passing out, the 99-pages text is now subjected to scrutiny and debate.
Cryptocurrencies like Bitcoin and Ethereum were in a dilemma given the uncertainties around the deal. The U.S. Treasury Secretary, Janet Yellen, stated the X-date to be June 1 2023, which recently extended to June 5.
Reuters reported the U.S. debt ceiling deal that suspends the limit till January 2025, is likely to limit the spending budget in coming budgets of 2024 and 2025. Also, it will claw back the funds allotted for COVID and remain unused, permitting energy projects will be ramped up, and would need extra requirements for food aid programs.
President Biden said it was “an important step forward”. The agreement represents a compromise, which means not everyone gets what they want. “That’s the responsibility of governing,” he added.
McCarthy noted in his Tweet, “I just got off the phone with the President a bit ago. After he wasted time and refused to negotiate for months, we’ve come to an agreement in principle that is worthy of the American people.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
