US Debt Deal Causes Bitcoin Volatility


The news is being updated

On May 28, Speaker of the US House of Representatives Kevin McCarthy announced an agreement in principle with the White House on a national debt limit. The news caused volatility in the cryptocurrency market.

“I just spoke to the President [Джо Байденом]. After he lost time and refused to negotiate for months, we came to an agreement in principle.

The head of state also confirmed the agreement. According to him, this is an important step forward, “which reduces costs” and “represents a compromise.”

“And this agreement is good news for the American people, because it prevents what could be a catastrophic default and lead to an economic recession, emptying retirement accounts and losing millions of jobs,” Biden said.

The agreement must be approved by the Republican-controlled House of Representatives and the Democratic-led Senate before the president signs it. The process may take more than a week.

The current US debt limit is $31.4 trillion. McCarthy’s plan would raise the ceiling by $1.5 trillion and cut spending by $4.5 trillion.

The stock market reacted positively to the news – futures on the Nasdaq 100 index rose by 0.59%, S & P 500 – by 0.37%.

On the night of May 29, the price of bitcoin at the moment rose above $28,400. Currently, the asset has corrected to levels near $28,000, with an increase of 3% over the past day (CoinGecko).

Hourly BTC/USDT chart on Binance exchange. Data: Trading View.

Subscribe to ForkLog on social networks

Found a mistake in the text? Select it and press CTRL+ENTER

ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!


Leave a Reply