thecoinrepublic.com
- 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 value, with 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 has been under the threat of strangling due to a liquidity crunch.
Bitcoin’s (BTC) price is 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. The global crypto market capitalization rose 2.94% at the press time and hit 1.17 trillion USD.
The bill, formally known as the “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 specific period. Now the bill seeks to face voting from Congress members.
Though the debt ceiling had caught the market sentiments for a long time and is now poised to resolve, Treasury yields rose, and 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 before lifting the debt ceiling.
President Biden reported calling the bill a “compromise.” On the other hand, according to House Speaker McCarthy, the agreement was “worthy of the American people.” For the coming days following its passing out, the 99-page text is now subjected to scrutiny and debate.
Given the uncertainties around the deal, cryptocurrencies like Bitcoin and Ethereum were in a dilemma. U.S. Treasury Secretary Janet Yellen stated the X-date to be June 1, 2023, which was 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 the 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 additional 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 agreed in principle that it is worthy of the American people.”