Bitcoin increases by 4 % due to the agreement to suspend the US debt limit
Bitcoin increases by 4 % due to the agreement to suspend the US debt limit
The cryptoma markets are in the green during the Asian trading session on Monday morning. The dynamics were promoted by an agreement on the debt limit between US President Joe Biden and the Republican top congressor Kevin McCarthy.
The preliminary agreement on the suspension of the Federal Government's debt limit of $ 31.4 trillion must still be approved by the congress. Nevertheless, according to Bloomberg, it has strengthened the willingness to take risks in the global markets.
Bitcoin again in the green area
John Toro, head of trade at the crypto exchange independent reserve, said: "The positive risk mood this morning is directly related to the solution to the dead end at the debt limit" before adding:
"The costs for the initial financing remain greatly increased compared to the crypto returns, which leads to a negative carry for long owners." This will continue to prove to be a headwind for risk systems and the cryptocomplex. ”
BTC rose to almost $ 28,500 a few hours ago, the highest level since May 8th. Since then it has decreased slightly, but is still over $ 28,000 after it has risen by 4 % that day.
Long -term consideration still draws the image of sideways consolidation for BTC.
The debt limit is a legal limit for the public debt that the Ministry of Finance can accept. It is an upper limit for how much money the Federal Government can pay by taking up more money for the debt that has already been accepted.
The debt limit is currently $ 31.4 trillion, and finance minister Janet Yellen warned that a default was very likely, provided that no agreement could be reached. The agreement would suspend this debt limit by January 2025, which means that there is no longer any limitation, how much more debts the government can accept.
it seems that the debt limit is not increased but "exposed".
So there will be no limitation for how much more debts the USA can make in the next two years.
No explanation will be made in two years. href = "https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5etfw" Data-Wpel-Link = "External"> $ BTC is on the advance
-Metalawman (@metalawman) May 2023
Tommy Honan, head of the market analysis at the Swyftx crypto exchange, commented: "It is possible that the mere relief of a debt agreement will bring the dealers back to the table and triggers the next major increase in the Bitcoin price."
cryptomarkt rally
The overall market capitalization has increased by 3 % to $ 1.22 trillion every day. The capital inflow of $ 37 billion has boosted all crypto-assets, and this step has led to a certain volatility in the market that has been stagnating in the past few weeks.
Ethereum gave up 3.4 % that day and exceeded the $ 1,900 mark for the first time since May 8. The other old coins were in the green area at the time of writing this article, but their profits were not as big as that of Bitcoin that cited the markets this Monday.
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