Cryptocurrency prices saw some rally over the weekend as lawmakers on Capitol Hill looked less likely to trigger the first debt default in US history.
Republican House Speaker Kevin McCarthy and President Joe Biden were close to reaching a final agreement on the US debt ceiling on Sunday and assessing the support they have to pass the legislation this week, according to the News agency.
“Earlier this evening, Speaker McCarthy and I reached a budget agreement in principle,” Biden said on Twitter on Saturday. “Over the next day, our negotiating teams will finalize the legislative text.”
Meanwhile, the price of bitcoin rose 2.9% over the past day to around $27,500, according to Queen Gekko. Ethereum rose 1.4% to around $1,850 as well, with both coins posting gains of 2.5% over the past week.
Some altcoins, including Cardano and Solana, edged out those gains, up 3.4% and 5.2%, respectively, according to CoinGecko. The only coin out of the top 20 by market cap in the red was Tron’s TRX, down 0.4% to $0.076 over the past day. But Tron still had a good week overall.
On Twitter, cryptocurrency trader @Rager attributed the increase in the bitcoin price to the cliffhanger on Capitol Hill. “Thanks for the pump this weekend, White House,” he wrote.
The stakes are high as America’s coffers begin to deplete, Treasury Secretary Janet Yellen said warned Weeks ago, he made it clear that the United States would be rocked by “economic disaster” if Washington failed to raise the debt ceiling in time.
The rift between Democrats and Republicans has dragged on for weeks as the country rapidly approaches what the White House has described as “America.”X date“the point at which the government cannot meet its debt obligations. That day may come as early as June 1,” according Leylin.
On May 8, Yellen acknowledged that there was a “significant gap” between Republicans and the president regarding raising the debt ceiling. One Point of disagreementAccording to Biden, he was a “wealthy tax cheat and cryptocurrency dealer” who said they should not be protected by a deal.
Based on media reports, it was not clear if the Republicans had approved some measures on the debt ceiling bill that would affect cryptocurrency investors. McCarthy told reporters Sunday that the settlement “doesn’t get everything that everyone wants,” according to the News agency.
Analysts said Decode Last week a default was unlikely, citing past debt-ceiling disasters that ended in last-minute deals like in 2011. But, unexpectedly, several experts said Cryptocurrency prices can drop Investors flee to safe assets such as the dollar during periods of market stress.
With June 1 approaching, it remains unclear whether Washington can pull it together in time or what effect a last-minute deal could have on markets. But, for now, the cryptocurrency markets seem to be pricing in some faith on the bipartisan front.
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